The usual view in a mixed economy is that some goods and services are produced privately and some, such as transportation, are produced publicly. Private institutions, such as households and entrepreneurs, produce and con sume goods and services in pursuing their parochial interests, while the pub lic sector attempts to broaden public interests. More precisely, the public sector constructs new transportation systems, improves their capaci ties, and regulates services and prices; and the private sector chooses locations of pro duction, modes of transportation, and routes of shipmellt. At the sallie' Lillte'. all forms of transportation influence our lives and cause us concern for Oll r environment, health, and safety. Thus, transportation is intimately woven into the daily life of individuals and organizations in our society. Because of its constant presence, transportation is easy to overlook until it fails in some way. Few would contend that private firms could or should construct an effi cient transportation system in a mixed economic system. Because the entire transportation system must be integrated and coordinated, firms with the power to construct such a system would have considerable monopoly control.
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The usual view in a mixed economy is that some goods and services are produced privately and some, such as transportation, are produced publicly. Private institutions, such as households and entrepreneurs, produce and con sume goods and services in pursuing their parochial interests, while the pub lic sector attempts to broaden public interests. More precisely, the public sector constructs new transportation systems, improves their capaci ties, and regulates services and prices; and the private sector chooses locations of pro duction, modes of transportation, and routes of shipmellt. At the sallie' Lillte'. all forms of transportation influence our lives and cause us concern for Oll r environment, health, and safety. Thus, transportation is intimately woven into the daily life of individuals and organizations in our society. Because of its constant presence, transportation is easy to overlook until it fails in some way. Few would contend that private firms could or should construct an effi cient transportation system in a mixed economic system. Because the entire transportation system must be integrated and coordinated, firms with the power to construct such a system would have considerable monopoly control.
This book's focus is on modeling procedures and applications of integrated models to the analysis of real world problems. The models are actually applied to analyses of policy issues in Korea, where a strong mixed economic system prevails. The main thesis of this book is that the characteristics of socio-economic activity that best describe mixed economic systems are (1) the interaction between the public and private sectors and (2) the derived nature of transportation demand. On this basis, models that are introduced in this book explicitly describe real world situations where public and private sectors play significant roles in shaping regional economic systems. Further, these models are capable of suggesting optimal levels of government investment in transportation that most enhance the market system. Thus, models in this book are advanced in both theoretical and operational senses. The book will be of value to a variety of readers: urban planners, regional scientists, geographers, economists, systems analysts, operational researchers, applied mathematicians, and social scientists who are concerned with models of, and theories about, transportation in mixed economic systems.
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