PPM 603E

Introduction to Transportation Economics

Spring 2000
1 Credit

49 Exeter Street
780-4008
CSC@USM.MAINE.EDU 741-9128

www.muskie.usm.maine.edu/csc/homepage

Overview

This is a five week, largely non-mathematical introduction to economic principles as they are applied in transportation. It is designed for transportation professionals who wish to explore the fundamentals of economics in their field and for graduate students wishing an economics-based introduction to transportation issues. Prior economics courses are helpful, but not essential. Basic concepts covered include the theory of transportation demand, transportation costs and investment planning, and current topics in transportation economics such as regulation-deregulation and social cost pricing.

The course may be taken on a non-credit basis or may be taken for graduate credit by completing a graded assignment at the end. Election of the graded/non-graded option must be made by the end of the course, and may not be reversed once the course is complete.

Text: Kenneth D. Boyer Principles of Transportation Economics 1998. Addison-Wesley-Longman.

Week 1 Transportation Demand

Topics: Basic Demand Theory
Passenger Transportation Demand
Freight Transportation Demand

Readings: Boyer, pp. 1-94

Week 2 Transportation Costs: 1

Topics: Basic cost concepts
Special cost concepts in transportation
Fixed Costs

Readings: Boyer, pp . 95-157

Week 3 Transportation Costs: 2

Topics: Variable Costs
Investment in Transportation Facilities

Readings; Boyer, pp. 151-244

Week 4: Transportation Pricing:

Topics: Pricing strategies
Principles of efficient pricing
Paying for Transportation facilities

Readings; Boyer, pp. 247-290

Week 5: Special Topics in Transportation Economics

Topics: Regulation and Deregulation in Transportation
Social Cost Pricing in Transportation

Readings: Boyer, pp. 295-398.

Final paper for those taking the course under the for-credit option will be distributed at the final class and will be due one week later.