Theory and Analysis: Impact of Traffic Congestion on Workers
The main economic model that will be used in this research is the supply and demand model. The choice of a theoretical model with which to investigate a specific research parameter depends on the features of the parameter and the intended outcome of the process. One of the objectives of this study is to quantify the extent to which the residents of Charleston incur losses, particularly to the economy as a result of traffic congestion. As outlined on the background, the United States makes huge losses in the form of fuel lost during traffic congestions. Using this model, there will be need to characterize individual losses as perceived by residents of Charleston as a result of the
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In this case, the labor market in Charleston will be tracked and presented to provide evidence of how traffic congestion has impacted the region’s labor market. Considering the assumption that traffic congestion makes employees to spend valuable time on the road and use resources, these losses must be reflected on the labor market graph. This is because the graph compares wage rate to quality of labor, which is affected by the time the employee spends on the job. To bring this into perspective, the study can consider using a comparative region that does not experience traffic congestion so as to illustrate the differing patterns of performance between the two labor markets. Based on this analogy, this graph will provide critical information about how the labor market is affected by traffic congestion in Charleston.
References
Roson, R. (1996). The macroeconomic impact of traffic congestion: a CGE analysis. In Recent Advances in Spatial Equilibrium Modelling (pp. 261-277). Springer, Berlin, Heidelberg.
Sullivan, A. M. (1983). The general equilibrium effects of congestion externalities. Journal of Urban Economics, 14(1),
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