Full Citation
Title: Revisiting the relationship between traffic congestion and the economy: a longitudinal examination of U.S. metropolitan areas
Citation Type: Journal Article
Publication Year: 2020
ISBN:
ISSN: 0049-4488
DOI: 10.1007/s11116-018-9884-5
NSFID:
PMCID:
PMID:
Abstract: Conventional transportation practices typically focus on alleviating trafc congestion afecting motorists during peak travel periods. One of the underlying assumptions is that trafc congestion, particularly during these peak periods, is harmful to a region’s economy. This paper seeks to answer a seemingly straightforward question: is the fear of the negative economic efects of trafc congestion justifed, or is congestion merely a nuisance with little economic impact? This research analyzed 30 years of data for 89 US metropolitan statistical areas (MSAs) to evaluate the economic impacts of trafc congestion at the regional level. Employing a two-stage, least squares panel regression model, we controlled for endogeneity using instrumental variables and assessed the association between trafc congestion and per capita gross domestic product (GDP) as well as between trafc congestion and job growth for an 11-year time period. We then investigated the relationship between trafc congestion and per capita income for those same 11 years as well as for the thirty-year time period (1982–2011) when trafc congestion data were available. Controlling for the key variables found to be signifcant in the existing literature, our results suggest that the potential negative impact of trafc congestion on the economy does not deserve the attention it receives. Economic productivity is not signifcantly negatively impacted by high levels of trafc congestion. In fact, the results suggest a positive association between trafc congestion and per capita GDP as well as between trafc congestion and job growth at the MSA level. There was a statistically insignifcant efect on per capita income. There may be valid reasons to continue the fght against congestion, but the idea that congestion will stife the economy does not appear to be one of them.
Url: https://link.springer.com/article/10.1007/s11116-018-9884-5
Url: http://link.springer.com/10.1007/s11116-018-9884-5
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Authors: Marshall, Wesley E.; Dumbaugh, Eric
Periodical (Full): Transportation
Issue: 1
Volume: 47
Pages: 275-314
Data Collections: IPUMS NHGIS
Topics: Labor Force and Occupational Structure, Land Use/Urban Organization
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