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) mo del is proposed for the purpose of studying the impact of a transporta tion bottleneck in an economy. This removes the implicit assumption of no capacity constraints that characterizes the traditional demand-dri ven input-output model. Data for Taiwan are used for empirical experim ents, and results from these experiments indicate the kinds of policy implications that might be drawn.