5 or So Books on Transportation Economics and Policy You Should Read

The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson
The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson

You are sitting by the fire, in your leather chair that just reeks “old money”, a reading light behind you, in your smoking robe and slippers, Labrador Retriever by your feet, pipe in one hand, a good book in another. What is that good book? Something about transportation economics and policy of course. Here are some of my favorites …

  1. The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger – Marc Levinson (no relation, though I met him once) [review]
  2. Megaprojects and Risk: An Anatomy of Ambition – Flyvbjerg, Bruzelius, and Rothergatter [review]
  3. Mega-Projects: The Changing Politics of Urban Public Investment – Altshuler and Luberoff
  4. Going Private – Jose Gomez-Ibanez and John Meyer
  5. Curb Rights – Daniel Klein, Adrian moore, and Binyam Reja

Owatonna – Main Street

Cross-posted from streets.mn: I write about Main Street in Owatonna:

I have a Theory of Constraints, that places with physical constraints (an island or peninsula) are more economically successful because the constraints force higher densities, and those higher densities create economies of agglomeration. The examples are San Francisco, or Manhattan, or Venice, and so on. People of course have less space at home (since real estate is pricier), but as a result, they are out and about more often, interacting and trading and creating.

Main Street – Owatonna

A Wells Fargo Bank in Owatonna, designed by Louis Sullivan

Caveat: This is at best drive-by urbanism, I didn’t do any investigative reporting besides citing Wikipedia and visiting and photographing. I don’t really know what makes Owatonna tick, but even at a short glance, some issues can be identified.

Owatonna is [the county seat of] Steele County, Minnesota, United States. The population was 25,599 at the 2010 census.

Downtown Owatonna [photos] appears economically the most successful of the four (Faribault, Owatonna, Albert Lea, and Austin) southern Minnesota main streets visited. The Main Street is mostly rented out. There were more people on the street.

The anchor of Owatonna is the Wells Fargo Bank, which is a great piece of architecture originally designed by Louis Sullivan as the National Farmer’s Bank. The main square hosts Farmer’s Markets and attracts people to the center of town. Away from the heart of town, the land use and architecture gets a bit lower rent (as one might imagine).

Some buildings in Owatonna that have had less successful architectural restoration.

I have aTheory of Constraints, that places with physical constraints (an island or peninsula) are more economically successful because the constraints force higher densities, and those higher densities create economies of agglomeration. The examples are San Francisco, or Manhattan, or Venice, and so on. People of course have less space at home (since real estate is pricier), but as a result, they are out and about more often, interacting and trading and creating.

One might expect binding man-made constraints to have the same effect. So if there were truly effective zoning or greenbelts or urban growth boundaries that forced concentration, there would be less developable spaces outside of downtown, driving more to the center, and making those places vibrant. The risk of course is that it might drive development away from the city altogether, to some other place.

At any rate, Owatonna is rapidly growing, and has a lot going on, and has done a better than average job of driving, luring, keeping economic activity, especially retail, toward the center of town, but still the core is only a few blocks long before demand peters out. It is a town and not a city, but even as a town it sprawls a bit more than it should.

 

5 or So Pieces of Children’s Transportation Fiction You Should Read (With Your Kids)

Thomas the Tank Engine by Rev. W. Awdry
Thomas the Tank Engine by Rev. W. Awdry

If you believe your kids should be indoctrinated in transportationism, you will get them appropriate books. While transportation fiction is a narrow category, kids books about transportation are plentiful. Here are some books and stories I liked for which the transportation technologies are important elements and geared toward younger readers.

  1. The Phantom Tollbooth (book and movie)
  2. Go, Dog, Go! – PJ Eastman (the abridged version is almost poetic)
  3. Don’t Let the Pigeon Drive the Bus – Mo Willems
  4. The Railway Series –  Rev. W. Awdry
  5. Richard Scarry’s What Do People Do All Day

Suggest more in the comments

A personal history and forecast for Modems, or “Is @Comcast the worst company in America?”

Comcast edit

I first saw modems when I was in middle school, learning about computers in summer school, taking courses for geeks, and visiting friends whose parents were programmers and had awesome set ups where the telephone handset was put into a coupler for high speed (110 bits per second) communications with remote mainframes. But my first Apple ][+ did not have a modem, at least not while I was in high school, since there was almost nothing to connect to that I was interested in. We exchanged floppies in school to trade information. I was interested in the Cable TV industry (as an industry more than as a consumer) as well, and I subscribed to CableAge, but connecting computing and CableTV was talked about, but there was no obvious idea of how that work. The CableTV industry expected TV to be interactive (e.g. Qube), and computers were separate things (and in many ways still are)

My first sustained exposure to modems came when I had a co-op job in 1985 at Hayes Microcomputer Products of Norcross Georgia, where I helped assemble and test new products. Back then, Transyt [about which there is almost no evidence online] was thought to be the future of email. Communications was PC to PC. So people would try to send an email to your computer. But if your computer was off, this wouldn’t work. So in addition to the shiny metal modem on the side of your PC, you would have a shiny metal Transyt box stacked above it, which would always be on to receive email communications. The future looked different then. We knew Fiber Optic would be the pipeline of the future of communications. I dreamt of building out the Fiber Optic monopoly serving American homes.

Before I went to Berkeley in 1994, we only had an intra-net at MNCPPC/MCPD for email (and that was new) and calendaring, there was effectively no world wide web, and I used modems from home to log into servers, usually at work. I tested Prodigy, AoL and CompuServe from home but they were insufficiently interesting (and sufficiently slow). When I went to UC Berkeley, I either logged in on-campus, or used dial-up service and a true high-speed (28.8 kbps) modem for my internet service from home. I finally saw the World Wide Web, and given my perspective having dealt with modem communications protocols (kermit, xmodem, ymodem, zmodem to transfer files), it was great that graphically-heavy pages from CERN in Switzerland would render on my own computer with a minimum of fuss. Seemingly simple things like standards were a huge innovation in making the market for what became the world wide web.

I first got Cable Modem service when I lived in Berkeley and @Home became available, probably some time in 1997. High-speed was so much better than dial-up. I could see high-resolution movie previews, like the Phantom Menace, which were awesome in their detail. When I moved to Minneapolis, Cable Modem was not available. I lived near my office the first year, so I did not even have a computer at home. Later I moved my work computer to home (it was my computer), and got a computer at the office and got home internet, but I downgraded to Visi DSL (who are wonderful people dealing with terrible constraints), but when we moved to our current house, we got Time Warner Roadrunner service. Time Warner traded its Minneapolis franchise to Comcast on a very dark day for customer service.

As with everyone else, we rented our cable modem from the cable TV monopoly. At some point in the mid 2000s they became available to purchase, but standards were changing quickly. Finally, on May 9, 2011 I bought my cable modem. Shortly thereafter it arrived, I installed it (with the knowledge and acquiescence of my local Cable TV, who continued to send me bits over the system of tubes we call the Internet). After successful installation of the cable modem that I owned, I returned to the Cable TV company the cable modem box. We know this was acknowledged by the Cable TV company because my bill was reduced.

I should have done this years earlier. At $90.87 it paid for itself in about 11 months of use. If you plan to stay in your residence for at least a year, don’t expect a major technology shift within the next year, and have a minimal amount of technical competency, buy your own cable modem. That they overcharge for Cable Modems is a good business while it lasts, but exploiting your customers is a Customer Service Problem. (Customer Service Problem #1)

ModemOrder

At any rate, the ability of customers bring their own devices to networks dates back millennia. People have long brought their own vehicles to publicly owned road networks. There have also been various regulations about things like weights and sizes of vehicles, wheel widths, and so on, to prevent damage to the network. Rail networks are typically organized differently of course, though a few countries are again testing multiple carriers on commonly owned track (the UK). In electrical networks, it has long been understood that people plug their own devices into the grid, via an outlet, to take electricity, and it is more common now that people can actually sell electricity to the grid. While some electrical utilities still will sell or rent you appliances, there is no assumption that the utility owns your appliances.

Since the Carterfone Decision, other customer-owned equipment have been allowed to be connected to the telephone network. Sadly this doesn’t quite apply to the US wireless industry yet. Cable companies however are required to allow you to have your own cable modem.

I recently got a letter telling me I am not being billed for my monthly modem rental (attached). Well of course not, I own my modem. I have never received a letter from the phone company asking me to prove ownership of a handset, or from the electric utility to prove ownership of my stove. (Customer Service Problem #2) [Why was this a letter, and not an email from Comcast to my Comcast account? Who reads mail anymore anyway? I was lucky I actually opened it.] The charitable view is that Comcast must have lost control of its inventory system, since they knew enough to not bill me, and then decided to. The cynical view is they know this, and just want to see how many customers do not notice. Should I ascribe malice or incompetence?

Now we know Comcast has such a bad reputation they have tried to change the name of their cable services to Xfinity (what does that even mean?). (Wouldn’t it have made more sense to keep the Comcast name for the extant Comcast products, and adopt a new overarching name for the holding company that also owns NBC Universal.)

So I called the number on the letter, and explained. I was not sure the guy got it, but he said I wouldn’t be billed. Notably, the phone tree you get when you call the phone number on the letter is not at all helpful, and you have to tell your customer address, name, and Social Security number to the automated phone software, and again to the representative, an infuriating redundancy. (Customer Service Problem #3)

I tweeted it @comcast. Comcast Twitter’s representative responded (her job must be to deal with annoying, irate customers, serving as the smiling face of the Cable Monopolist). She was very nice, but said that while my billing was straightened out, the ownership was not and someone would call me.

He did, and left a message, with a phone number, which I called back, which turned out to be a number that outsiders cannot call. (Customer Service Problem #4)

I called the regular number, (repeat Customer Service Problem #3) and the person who eventually picked up could not deal with it and put me on hold for 9 minutes, before the call was eventually disconnected. (Customer Service Problem #5)

I tweeted it again. Comcast’s Twitter representative apologized and said they would call back.

The person called me back, and said I must fax proof of ownership to a local number Fax # 651 493 5287. Two problems with this sentence: first the word “must”, second the word “fax”. At first I was annoyed, but then I saw the juicy irony. I confirmed that they wanted a fax. I asked about email. The Comcast staff person who must enter this into databases doesn’t take email. (Customer Service Problem #6)

So Comcast, a large Internet Service Provider, that sells email services, and has for over 10 years, does not allow customers to email them, and still uses Faxes. Comcast has not embraced the idea of dogfooding.

I was told “If you don’t want to be charged for the modem you have to do this.” So I have to prove I own something that has been in my house for two and half years on demand. I pointed out most American homes do have email and don’t have fax machines. (Customer Service Problem #7) I pointed out I would mock them on Twitter (which I have done).

Fortunately, I bought the modem via Amazon, which is not a clueless bureaucracy, and they had the record. I printed a PDF, and tried to figure out if there were still free e-fax services. Had I purchased it elsewhere, in the physical world, getting proof of purchase would be much harder. As surely Comcast must know.

There are. I tried one: myfax.com, which said they were queued up and would send an email to confirm. For whatever reason, this email never arrived, but at least I never paid for it. Figuring that it would be risky to wait, I tried a second: GotFreeFax.com, which did seem to work (in that I got confirmations from them they sent it). So I hope Comcast has received this fax, which I should not have had to send. Comcast has not confirmed by email or phone that it has received this information. (Customer Service Problem #8)

So this is a long-way around of asking: why are we stuck with the Comcast monopoly?

In my neighborhood, CenturyLink (which sounds like a golf-course for a retirement village in Florida, who names these things?) is the local wireline phone carrier. They offer high-speed internet in some neighborhoods. Not mine (I don’t consider 1.5 Mbps high-speed anymore). They have no details on when this will arrive.

There are a few WiMax services in Minneapolis (e.g. Nextera), but bandwidth is only up to 6Mbps, which does not seem fast enough. US Internet is offering fiber optic in a few neighborhoods. Not mine. Satellite internet has ok speed (up to 15 Mbps down, still below cable), but very low caps and slow upload speed and high prices. Google Fiber is just a test case, and not in Minneapolis. The US is notoriously low on the list of internet speeds (31st according to Ookla, but I doubt the methodology is accurate, since there is a lot of selection bias).

For short periods of time, I get speeds on my 4G phone comparable to cable modem, but I don’t know if this sustains, and I cannot use tethering without giving up my unlimited data package from being an early ATT iPhone customer, and I certainly don’t want to pay by the bit if I can avoid it.

Fortunately, 5g is coming, offering higher speed (I have seen both 1 Gbps and 300 Mbps down and up, so who knows until it is closer to deployment, in either case, this is better than Cable companies currently provide, though of course, they could respond), but this is looking to be around 2020. I believe (religiously) this will be the replacement for not only existing wireless communications but also wireline communications, just as phone lines are dying, cable lines are next to be replaced by mobile. Video will have gone from the air (broadcast) to the cable, and back to the air as its primary delivery mechanism. (There is also G.Fast over phone wires promising 500 Mbps within 500 m of fiber node)

Monopolies don’t get better, they get replaced. Cable companies as purveyors of television are already losing market share. I suspect (and certainly hope) Cable companies as the purveyors of high-speed internet will be as obsolete as the telegraph, mail, and dare I say it, FAX machine within a decade. Fortunately, wireless remains a competitive market in the US, Verizon and AT&T won’t be allowed to merge anytime soon (though we know that they will eventually, that’s how networks always go, consolidation is the natural state of mature networks to exploit monopoly power economies of scale). It’s just too bad I have to wait another 6 years before wireless nirvana.

I fully expect Comcast to disrupt or monitor my service, that’s what disgruntled employees at telecom companies or the NSA do, and it is quite clear that Comcast does not have gruntled employees.

+++

Car Sharing Trends

Source: Innovative Mobility Carsharing Outlook: Carsharing Market Overview, Analysis, and Trends - Summer 2013 http://tsrc.berkeley.edu/node/629
Source: Innovative Mobility Carsharing Outlook: Carsharing Market Overview, Analysis, and Trends – Summer 2013 http://tsrc.berkeley.edu/node/629

Susan Shaheen et al. at UC Berkeley have some nice trends on Carsharing in the US in their report Innovative Mobility Carsharing Outlook: Carsharing Market Overview, Analysis, and Trends – Summer 2013. I don’t know where market saturation is, but we are not there yet.

Road pricing and asset publicization: A new approach to revitalizing US infrastructure

A Political Economy of Access: Infrastructure, Networks, Cities, and Institutions by David M. Levinson and David A. King
A Political Economy of Access: Infrastructure, Networks, Cities, and Institutions by David M. Levinson and David A. King

Rick Geddes and Dimitar Nentchev write Road pricing and asset publicization: A new approach to revitalizing US infrastructure – Economics – AEI:

“This study offers three key insights:

1. Pricing the use of transportation assets that are presently “free” liberates massive latent economic value currently trapped in those assets;

2. Latent value can be best realized through competitive bidding among a group of firms on the basis of the largest upfront lease payment to operate the asset; and

3. A portion of the realized value can be invested in perpetuity through a permanent fund that generates income for all citizen-owners of the asset. The investment income from the permanent fund helps encourage citizen-owners to accept the pricing necessary to release the asset’s latent economic value.”

Parts 1 and 3 are very similar to the idea I had in Enterprising Roads.

I am not convinced of the value of point 2 (i.e. competitive bidding for upfront leases) vs. just having a utility manage the stream of revenue and provide an annual road dividend to users. That’s mostly a risk transfer. I can see the advantage of getting government out of the road management business, but then I look at private monopolies, and I don’t see much better performance, and so many PPPs have gone bad.

The influence of light rail transit on transit use: An exploration of station area residents along the Hiawatha line in Minneapolis

My student Jessica Schoner and colleague Jason Cao recently published:

Cao and Schoner (2014) The influence of light rail transit on transit use: An exploration of station area residents along the Hiawatha line in Minneapolis. Transportation Research Part A: Policy and Practice
Volume 59, January 2014, Pages 134–143

Highlights

  • We compare transit use of residents in LRT corridor and control corridors well served by bus transit.
  • People moving into LRT corridor before its opening use transit more than those in control corridors.
  • Transit use of people moving into LRT corridor after its opening is similar to that of urban controls.
  • LRT-related land use and transportation policies are necessary for ridership growth.

Abstract
Rail transit is often implemented in the corridors already with high transit demand. When evaluating their ridership benefits, previous studies often choose the city/county/region as control groups, rather than comparable corridors without rail, and hence overstate their impacts. In this study, we employ propensity score matching to explore the impact of Hiawatha light rail transit (LRT) on transit use. We find that compared to residents in similar urban corridors, the Hiawatha LRT promotes transit use of residents who have lived in the corridor before its opening, and that residents who moved to the corridor after its opening use transit as often as new residents in the comparable urban corridors without LRT. We conclude that besides LRT, land use and transportation policies are necessary for ridership growth.

Keywords
Propensity score matching; Self-selection; Transit-oriented development; Travel behavior; Urban form

5 or So Pieces of Transportation Fiction You Should Read

HG Wells' Things to Come
HG Wells’ Things to Come

“But I like fiction”  you say. Well transportation fiction is a narrow category. Here are some books and stories I liked for which the transportation technologies are important elements.

  1. The Financier, The Titan, and The Stoic – Theodore Dreiser’s Trilogy of Desire
  2. The Roads Must Roll – Robert Heinlein
  3. The Trail of the Hawk – Sinclair Lewis (not Sinclair Lewis’s best, that would be Main Street, Babbitt, or Arrowsmith, but a really nice picture about the changes brought by the then new car)
  4. The Shape of Things to Come – HG Wells (the movie and book)
  5. The Odyssey – some dude named Homer

Suggest more in the comments

Faculty Scholarly Productivity and Reputation in Planning: A Preliminary Citation Analysis

Tom Sanchez discusses faculty citations in the planning field. The University of Minnesota planning program, with which I am affiliated, comes out quite highly in this metric. Go Gophers. Faculty Scholarly Productivity and Reputation in Planning: A Preliminary Citation Analysis

FacultyCites