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The elasticities of passenger transport demand in the Northeast Corridor

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  • Ignacio, Escañuela Romana

Abstract

The objective of this study is to estimate the values for compensated and uncompensated price elasticities and income elasticities for the various relevant modes of passenger transport between cities along the Northeast Corridor of the United States. The theoretical assumptions of the theory of utility maximization by a rational consumer are a necessary condition, a Rotterdam demand model is applied due to several relevant advantages, and the seemingly unrelated regression method is used. The problem of aggregation in the Rotterdam model will also be considered. I will approximate the data sets for the various modes of transport, reconstructing the quantities and prices. The quantification of demand elasticities is strongly relevant in order to understand substitution and income effects on the demand for transport modes. However, efficient multimodal transport is crucial to the economic and social life of such vast metropolitan areas. In general, the relatively successful estimation of this demand model, and the information it provides, shapes a proposal for an understanding of transport in the so-called mega-regions, which are increasing in size and global relevance.

Suggested Citation

  • Ignacio, Escañuela Romana, 2019. "The elasticities of passenger transport demand in the Northeast Corridor," Research in Transportation Economics, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:retrec:v:78:y:2019:i:c:s0739885919302719
    DOI: 10.1016/j.retrec.2019.100759
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    Cited by:

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    More about this item

    Keywords

    Demand; Maximization; Elasticity; Transport; Megaregion;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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