This paper analyses the relationship between road infrastructure improvements and investment in capital assets. Using aggregate data at a provincial level for 1977-2008, an equation for machinery and equipment investment is estimated applying Panel Corrected Standard Errors. The results indicate that the long-term elasticities of investment in relation to market potential, GDP and average years of schooling are 0.90, 0.75 and 0.80, respectively. Additionally, the long run impact of a road infrastructure investment policy is assessed. We find that the elasticities of investment in machinery and equipment, capital stock and GDP in relation to travel time are 1.18, 0.33 and 0.11, respectively.

Ruíz, A. (GEAP, XREAP), Matas, A. (GEAP, XREAP), Raymond, J. Ll. (GEAP, XREAP)

XREAP2016-09.pdf

We show how data collected from a GPS device can be incorporated in motor insurance ratemaking. The calculation of premium rates based upon driver behaviour represents an opportunity for the insurance sector. Our approach is based on count data regression models for frequency, where exposure is driven by the distance travelled and additional parameters that capture characteristics of automobile usage and which may affect claiming behaviour. We propose implementing a classical frequency model that is updated with telemetrics information. We illustrate the method using real data from usage-based insurance policies. Results show that not only the distance travelled by the driver, but also driver habits, significantly influence the expected number of accidents and, hence, the cost of insurance coverage. Telemetry should facilitate the inclusion within insurance pricing of those factors that traffic authorities identify as being associated with risky drivers, including, for example, traffic violations.

Ayuso, M. (Riskcenter, XREAP); Guillén, M. (Riskcenter, XREAP); Nielsen, J. P.

XREAP2016-08.pdf

Tourism is a highly dynamic sector. An example of this is the boom that cruise tourism has seen in recent years, leading many countries to consider cruises a key product in their development of tourism. The Port of Barcelona has become the leading cruise port in the Mediterranean area (2.4 million cruise passengers in 2014), highlighting its role as both a port of call and a homeport. Such leadership is explained by the conjunction of several factors: its strategic geographical position, its high quality port and transportation infrastructures, and the attractiveness of the city of Barcelona itself, for both its cultural and artistic heritage and its leisure and shopping opportunities.
This article quantifies the local and regional economic impact generated by cruise activity in the Port of Barcelona. Using input-output methodology, its overall impact is computed for the year 2014 as the sum of three partial impacts: direct effect, indirect effect and induced effect. This article is pioneering at the European level, in combining different issues: estimating the impact of the Barcelona Cruise Port activity, presenting these impacts disaggregated at a sectoral level, using a rigorous methodology and carrying out extensive fieldwork. The estimated impacts demonstrate that all sectors, not just traditional tourism-related sectors, benefit from cruise tourism.
Despite the significant economic benefits that cruise activity has generated over the whole Catalan economy, it is important to note that such activity also generates negative externalities associated with congestion and environmental issues. The reduction of these negative effects is one of the major challenges in making the development of cruise tourism sustainable in a city like Barcelona.

Vayá, E. (AQR-IREA, XREAP), García, J. R. (AQR-IREA, XREAP), Murillo, J. ( (AQR-IREA, XREAP), Romaní, J. (AQR-IREA, XREAP),  Suriñach, J. (AQR-IREA, XREAP)

XREAP2016-07.pdf