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We present a dynamic stochastic general equilibrium (DSGE) New Keynesian model with indivisible labor and a dual labor market: a Walrasian one where wages are fully flexible and a unionized one characterized by real wage rigidity. We show that the negative effect of a productivity shock on inflation and the positive effect of a cost-push shock are...
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... two low cost airlines, assumed to fly within Europe only utilizing a pure, star network, are based in London and Berlin, in order to represent the likely number of regional airlines expected to survive by 2020. The high-speed railway network is depicted in Figure 3. The basic assumption of this case study is that the entire rail network will exist by 2020, but the four TENs will consist of conventional rail only, unless the projects are undertaken. ...
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We present a dynamic stochastic general equilibrium (DSGE) New Keynesian model with indivisible labor and a dual labor market: a Walrasian one where wages are fully flexible and a unionized one characterized by real wage rigidity. We show that the negative effect of a productivity shock on inflation and the positive effect of a cost-push shock are...
Citations
... The conclusion was that due to the replacement of domestic flights and flights up to 400 km with high speed rail, up to 54 000 slots can become available at Madrid Airport, followed by around 40 000 slots at Paris CDG and 20 000 at Frankfurt Airport. Since then many scientific papers were published discussing the competition and cooperation between the EU air transport and rail, covering categories such as travel time and ticket price [33], passenger preferences [13], different airline and rail operator business models [2,13], seats and flight frequencies [8], and environment and social welfare [33]. However none of these articles quantified the estimated effect of a potential short haul flights ban across Europe in terms of the number of flights and passengers affected, as well as the scale of air traffic movements and flying time reduction in relation to the overall traffic. ...
Increasing environmental awareness is putting a growing pressure on modern aviation. This is particularly reflected in calls for the introduction of a ban on short-haul flights that can be replaced by rail transport, which is currently considered in the European Union and some other Western European countries. The article aims at estimating the impact of the short-haul flights ban on air traffic at European airports. The analysis was performed for no-fly scenarios on routes where alternative rail travel takes no more than 3, 4, 5 or 6 h, respectively. The paper estimates the number of aircraft movements and air transport seats that would be affected by a potential ban on short-haul flights. Considering the impact on the environment, an estimation has been made to assess the extent to which the number of flight hours could be limited on all restricted routes. Performed analyses enabled the identification of flights which could be replaced by rail connections, broken down by countries and airports.
... Others study the competition between the air and rail modes in great detail, but largely ignore the potential competitive, complementary, and other implications associated with the road network [8,9]. A study on HSR ridership for California [10] estimated between 7-8% HSR ridership in the interregional markets; it suggests that 6% of automobile traffic, 33% of commercial air, and 27% of conventional rail was diverted to HSR. ...
... As fare structure for HSR, and other modes, are developed, more appropriate market-based pricing mechanisms can be seamlessly incorporated in this part of the model. The HSR fare taken from literature does not explicitly incorporate the price of electricity [8]. In summary, the round-trip fare and cost functions used in this study are: ...
With increasing demand and rising fuel costs, both travel time and cost of current intercity passenger transportation modes are becoming increasingly relevant. Around the world, high-speed rail (HSR) is seen as a way to alleviate demand on highways and at airports. Ridership is the critical element in determining the viability of a large capital, long-term transportation investment. This paper provides a systematic, consistent methodology for analyzing systemwide modal ridership with and without a proposed HSR network and analyzes the potential for high-speed rail as part of the existing multimodal transportation system in a region in terms of ridership. Considerations of capital investment (e.g., network design and HSR speed), along with exogenous demographic, technological, economic, and policy trends in the long-term, are used to project ridership over time. This study represents an important step toward a consistent, comprehensive economic analysis of HSR in the United States.
... We shall therefore try to provide an empiric contribution to the works already carried out on the modelling of the rail -air competition (particularly Roman, Espino & Martin in 2010, Gonzalez-Savignat in 2004concerning the Spanish case and Levinson & al. in 1997 concerning the Californian corridor) and on the conditions resulting in the success of high speed railway lines when faced with competition from airlines (Janic, 1993). A priori, the theoretical results are generally contrasted with, depending on the context, the total high speed train market share varying between 25 % and over 60 % (Adler, Nash & Pels, 2008). The distance above which high speed railways can no longer efficiently compete against air travel is also an important factor: Moshe Givoni (2006) evaluates this as being more than 500 km but estimates that the air travel sector only withdraws from the market on distances of under 300 km. ...
The high speed rail network represents now a large part of the rail services, 4 sub-networks being concerned from/to Paris. The interoperability between high-speed trunk lines and the rest of the electrified network permits a large coverage of the French territory : the TGV services network is broader than the real high speed one. From the beginning of high-speed services in France, the main target of the TGV system has been business traffic using the domestic air transport network. The SNCF can be considered as an active player in the Air transport competition, offering low travel times, competitive prices and high capacities. The frequencies can be high between the largest towns : 16 round-trip services between Paris and Marseilles, 21 between Paris and Bordeaux, etc. The development of the TGV network creates new opportunities of competition with Air France and other carriers. That is one of the reasons of the relative weakness of competition within the domestic Air Transport sector. Air France is now planning a progressive downsizing of its domestic services on the lines where the market share of the TGV is growing. We have compared the level of service of the two carriers, according to the TGV average travel time (quite different from the real distance). Our main hypothesis is that Air France adapts its service level and its routes to the supposed state of competition. When most of the flights are oriented towards Orly airport (pure domestic market), the competition is at its advantage. When most of them are oriented to the CDG hub, the competition is over for Air France. The 'price war' has not the same intensity : air fares are higher when HST is not competitive or when the air lines are mostly used for feedering the main hub. The 'area of intense competition' is now between 150 and 300 minutes of HST average travel time, that is more than previously estimated. Most of the domestic and short-haul international routes from Paris, but also from other main towns like Marseilles or Lyon will be shortly concerned...
... Thus, at distances of less than 400 miles high-speed rail can meet or beat air travel times, while the capability wanes up to and past 500 miles. 63 Specifically, research based on European results finds that the optimal distances to transfer market share from air travel to high-speed rail are 200 to 300 miles. 64 The effective distances are fluid, though, depending on the rail line's speed in each corridor. ...
This paper is a contribution to evaluate structural and behavioral changes in railway passenger markets. The novel elements of our analysis are the following: (i) the consideration of inter-modal and intra-modal competition, (ii) the presence of public and private operators, and (iii) endogenous service frequency. After calibrating the model using actual data from two Spanish High Speed Rail lines, simulation exercises allow us to conclude the following. Privatization, whether entry occurs or not, would prompt an increase in prices and a reduction in the number of train services, eventually leading to welfare decreases, as compared with a regime where the incumbent rail operator remained public. Entry is found to be welfare improving only when it generates large increases in traffic. Otherwise welfare losses would materialize even though entry raised some efficiency gains.
Zusammenfassung Die Wettbewerbssituation auf dem deutschen Bahnmarkt ist vielschichtig: Sowohl die verschiedenen Teilsegmente des Bahnmarktes
als auch der intermodale Wettbewerb müssen berücksichtigt werden. Dabei besteht die Gefahr, die Wettbewerbsposition des gesamten
Eisenbahnverkehrs gegenüber anderen Verkehrsträgern aus den Augen zu verlieren.
Air travel routes and high speed rail connection between Milan and Rome after the Alitalia crisis This paper analyses the first available data about changes in passenger traffic and air/rail fares after the Alitalia crisis and the substantial reduction of the travel time between Milan and Rome, due to the improvement of high speed rail on this connection. As recently happened in similar cases within Europe, the rail has gained a significant share of traffic previously attracted by air transport services. Apart from that, a real price competition is prevented by a number of inefficiencies which are mainly due to the monopolistic position of the new Alitalia on the route Milan Linate-Rome Fiumicino and problems of accessibility affecting our airports, and partly our rail stations too. The role of the various authorities potentially involved is burdened, in the last instance, by infrastructural deficiencies.
