METHODOLOGY AND STRUCTURE OF THE INTERREGIONAL MODEL. IN: REFORMING TRANSPORT PRICING IN THE EUROPEAN UNION: A MODELING APPROACH

This chapter describes the interregional version of the urban model for microeconomic analysis of road transport pricing in European Union countries. The purpose of the interregional model is to analyze optimal pricing and regulatory policies for interregional transport. Differences between the urban and interregional models are highlighted, and the limitations of the interregional model are discussed. Attention is paid to the structure of the demand side of the transport market and to the heterogeneity of transport services. The optimal tax rules that can be theoretically derived for the type of models constructed are outlined.