NYC-WTC_000187725

NYC 9/11 Public Portal Document

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I (13) V i.

Then, the aggregate consumer surplus measure is: f ■ (14)

The aggregate producer's surplus (increased land value or profit) accruing to the owners of housing is similarly calculated as: I (15) PS'i=EE-^ln[i+expA. VJ

The aggregate producer's surplus accruing to the owners of commercial floor space is obtained by integrating over the function ^l(^l) summing over each 1:

(15')

Types of Simulations Two types of simulations can be conducted with NYREG. The first kind will be referred to as a Base Run and the second kind as a Policy Run. A Base Run determines an equilibrium under a set of calibrated coefficients and input data values. These can be the observed input data values or input data values appropriate to a future point in time or to alternative assumptions about the distribution of jobs, the housing stock, or characteristics of the transport network.

Once a Base Run is established, a Policy Run can be conducted by changing the transport network characteristics (and therefore, the travel times and costs of any one or several of the five modes) and then determining a new equilibrium. Comparison of the Policy Run result with the Base Run result allows computation of the benefits to the users of the transport system (consumer surplus) and of the benefits to property owners in property value increases by land use type (producer surplus). in addition, changes in mode splits, in vacancies, in residential location patterns and in

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NYC-WTC_000187767