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Department of Business and Management Science, Norwegian School of Economics (NHH) Discussion Papers, Department of Business and Management Science, Norwegian School of Economics (NHH)

No 2010/4:
The impact of pecuniary costs on commuting flows

David Philip McArthur (), Gisle Kleppe (), Inge Thorsen () and Jan Ubøe ()

Abstract: In western Norway, fjords cause disconnections in the road network, necessitating the use of ferries. In several cases, ferries have been replaced by roads, often part-financed by tolls. We use data on commuting from a region with a high number of ferries, tunnels and bridges. Using a doubly-constrained gravity-based model specification, we focus on how commuting responds to varying tolls and ferry prices. Focus is placed on the role played by tolls on infrastructure in inhibiting spatial interaction. We show there is considerable latent demand, and suggest that these tolls contradict the aim of greater territorial cohesion.

Keywords: Commuting flows; pecuniary costs; (follow links to similar papers)

JEL-Codes: R10; R12; (follow links to similar papers)

24 pages, May 19, 2010

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