Information Technology and Transportation: Substitutes or Complements?

Oliver, Atara Stephanie (2014): Information Technology and Transportation: Substitutes or Complements?

Abstract

The increased prevalence of Information and Communications Technology (ICT) provides opportunities to substitute ICT for transportation. However, ICT can also be a complement for transportation, and prior research on the effect of ICT on travel for specific purposes has shown mixed results. Therefore, I examined the relationship between ICT and transportation on a larger scale, using a modified Quadratic Almost Ideal Demand System (QUAIDS) model to calculate expenditure and price elasticities for several categories of ICT and transportation goods. Among other results, I found that cellular service was a complement for private transportation, while home Internet service had no effect.

• Item Type: MPRA Paper
• Language: English
• Keywords: Transportation, Consumer Expenditures, Information Technology
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R22 - Other Demand; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R41 - Transportation: Demand, Supply, and Congestion ; Travel Time ; Safety and Accidents ; Transportation Noise

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