TransNIEMO: Economic Impact Analysis Using a Model of Consistent Interregional Economic and Network Equilibria

29 Pages Posted: 12 Feb 2014

See all articles by JoongKoo Choo

JoongKoo Choo

University of Southern California

Peter Gordon

University of Southern California - Sol Price School of Public Policy

James E. Moore

University of Southern California - Sol Price School of Public Policy

Qisheng Pan

Texas Southern University

Jiyoung Park

State University of New York (SUNY) - Buffalo

Harry Richardson

University of Southern California - Sol Price School of Public Policy

Date Written: January 31, 2014

Abstract

We describe a model that integrates a multi-regional input-output model of the U.S. (50 states and the District of Columbia) with the national highway network. Interstate commodity shipments are placed on a congestible highway network. Simulations of major choke-point disruptions redirect traffic which increases the costs of some shipments. Increased costs show up in higher prices which help to determine a new input-output equilibrium. We find economic and network equilibria that are consistent. The simulations show only moderate economic impacts. We ascribe this to the resilience of highway network. The model provides state-level detail on who bears the costs of the disruptions.

Keywords: multi-regional input-output model, highway network, interstate commodity shipments, highway infrastructure failure

JEL Classification: R110, R120, R130, R150, R400, R410, R490

Suggested Citation

Choo, JoongKoo and Gordon, Peter and Moore, James E. and Pan, Qisheng and Park, Jiyoung and Richardson, Harry, TransNIEMO: Economic Impact Analysis Using a Model of Consistent Interregional Economic and Network Equilibria (January 31, 2014). CESifo Working Paper Series No. 4601. Available at SSRN: https://ssrn.com/abstract=2393972

JoongKoo Choo

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

Peter Gordon

University of Southern California - Sol Price School of Public Policy ( email )

Los Angeles, CA 90089-0626
United States

James E. Moore

University of Southern California - Sol Price School of Public Policy ( email )

Los Angeles, CA 90089-0626
United States

Qisheng Pan

Texas Southern University ( email )

3100 Cleburne Street
Houston, TX 77004
United States

Jiyoung Park

State University of New York (SUNY) - Buffalo ( email )

12 Capen Hall
Buffalo, NY 14260
United States

Harry Richardson (Contact Author)

University of Southern California - Sol Price School of Public Policy ( email )

Los Angeles, CA 90089-0626
United States

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