TRANSPORTATION ECONOMICS AND GOVERNMENT POLICY

Transportation Economics and Government Policy

Transportation Economics and Government Policy

Introduction

The airline industry is seriously affected the elasticity of demand and supply, costs, wage inequality, as well as monetary, fiscal, and federal policies. Externalities affecting many sectors of the economy, the events of 11 September, and the weather, all play a role in the success of this industry. As the industry fights to keep afloat, the officers who bore the burden of financial crises that plague the industry.

Comparison

Airlines also have the ability to increase or reduce prices when they see fit, however, growth rates will not work if the tariffs are raised by all airlines. It can be argued that the use of roads has close substitutes, namely public transport. This, however, there is congestion debate false accusation, a public transport good substitute for self-transport? Due to the large number of car drivers still willing to pay for congestion charges, in order to use them in cars and around the city center are occupied, one would be inclined to say self-transport option for most consumers.

There has been talk recently of the Government, invoking the roads at the national level, a scheme to measure the tax revenue so that the road tax discs and fuel tax could be eliminated. The removal of these existing taxes, additional items for charging tolls for driving himself, could lead to an increase in overall demand on the road. But people and politicians opposed to the roads, saying that it is a burden for low-income workers who are beginning to shift at night, when public transportation is not available and complete in the morning, when the congestion charge at the time of its peak, or families to live far from each other, but the trip to see each other regularly (Winston; et. al. 2000).

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