Time is money: calculating the social value of time in metropolitan Lima for urban transport users

The objective of this study is to estimate the social value of time (SVT) for urban transit users in Metropolitan Lima. To this end, two estimates of SVT are presented. In the first case, data from the National Household Survey are used to estimate SVT based on gross monthly income. In the second case, using data from surveys conducted for the purposes of this study, a subjective estimate of STV is made by deriving the value that people assign to their time based on their stated preferences. The results indicate that, compared to previous estimates, STV has increased considerably in recent years. The stated-preference methodology is a useful tool for determining individual behavior in hypothetical situations; it can be used to calculate fares and travel times for new modes of transportation and thus evaluate potential alternatives for transportation projects. (Audio: Department of Economic Publications)