The economic impact of a transportation bottleneck: an integrated input-output and linear programming approach

A transport-constrained input-output and linear programming (IO/LP) model is proposed for the purpose of studying the impact of a transportation bottleneck in an economy. This removes the implicit assumption of no capacity constraints that characterizes the traditional demand-driven input-output model. Data for Taiwan are used for empirical experiments, and results from these experiments indicate the kinds of policy implications that might be drawn.