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A Dynamic Analysis of Household Car Ownership in Ireland

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Author Info
Nolan, Anne (ESRI)

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Abstract

This paper examines the determinants of household car ownership in Ireland, using longitudinal data for the period 1995-2001. This was a period of rapid economic and social change in Ireland, with the proportion of households with one or more cars growing from 74.6 per cent to 80.8 per cent over the period. Understanding the determinants of household car ownership, a key determinant of household travel behaviour more generally, is particularly important in the context of current policy developments which seek to encourage more sustainable means of travel. In this paper, we exploit the availability of longitudinal data to estimate dynamic models of household car ownership, controlling for unobserved heterogeneity and state dependence. We find income and previous car ownership to be the strongest determinants of differences in household car ownership. Other important influences include household composition (in particular, the presence of young children) and lifecycle effects, which create further challenges for policymakers in seeking to change travel behaviour.

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Publisher Info
Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP269.

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Length: 30 pages
Date of creation: Dec 2008
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Handle: RePEc:esr:wpaper:wp269

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Related research
Keywords: Car Ownership/Panel Data/Random Effects Probit/Ireland;

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  1. Whelan, Christopher T. & Maitre, Bertrand & Nolan, Brian, 2007. "Multiple Deprivation and Multiple Disadvantage in Ireland: An Analysis of EU-SILC," Research Series, Economic and Social Research Institute (ESRI), number PRS61. [Downloadable!]
  2. McCarthy, Patrick S, 1996. "Market Price and Income Elasticities of New Vehicles Demand," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 543-47, August. [Downloadable!] (restricted)
  3. Michael K, et al Berkowitz, 1990. "Disaggregate Analysis of the Demand for Gasoline," Canadian Journal of Economics, Canadian Economics Association, vol. 23(2), pages 253-75, May. [Downloadable!] (restricted)
  4. Matas, Anna & Raymond, Josep-LLuis, 2008. "Changes in the structure of car ownership in Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 187-202, January. [Downloadable!] (restricted)
  5. Johansson-Stenman, Olof, 2002. "Estimating Individual Driving Distance by Car and Public Transport Use in Sweden," Applied Economics, Taylor and Francis Journals, vol. 34(8), pages 959-67, May. [Downloadable!] (restricted)
    Other versions:
  6. Sean Lyons & Karen Mayor & Richard S.J. Tol, 2007. "Convergence Of Consumption Patterns During Macroeconomic Transition: A Model Of Demand In Ireland And The Oecd," Working Papers FNU-141, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2007. [Downloadable!]
    Other versions:
  7. Thobani, Mateen, 1984. "A nested logit model of travel mode to work and auto ownership," Journal of Urban Economics, Elsevier, vol. 15(3), pages 287-301, May. [Downloadable!] (restricted)
  8. Fred Mannering & Clifford Winston, 1985. "A Dynamic Empirical Analysis of Household Vehicle Ownership and Utilization," RAND Journal of Economics, The RAND Corporation, vol. 16(2), pages 215-236, Summer. [Downloadable!] (restricted)
  9. Storchmann, Karl, 2005. "Long-Run Gasoline demand for passenger cars: the role of income distribution," Energy Economics, Elsevier, vol. 27(1), pages 25-58, January. [Downloadable!] (restricted)
  10. Verbeek, Marno & Nijman, Theo, 1992. "Testing for Selectivity Bias in Panel Data Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 681-703, August. [Downloadable!] (restricted)
    Other versions:
  11. Kayser, Hilke A., 2000. "Gasoline demand and car choice: estimating gasoline demand using household information," Energy Economics, Elsevier, vol. 22(3), pages 331-348, June. [Downloadable!] (restricted)
  12. De Jong, G. C., 1990. "An indirect utility model of car ownership and private car use," European Economic Review, Elsevier, vol. 34(5), pages 971-985, July. [Downloadable!] (restricted)
  13. Dargay, Joyce M, 2001. "The effect of income on car ownership: evidence of asymmetry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(9), pages 807-821, November. [Downloadable!] (restricted)
  14. John G. Cragg & Russell S. Uhler, 1970. "The Demand for Automobiles," Canadian Journal of Economics, Canadian Economics Association, vol. 3(3), pages 386-406, August. [Downloadable!] (restricted)
  15. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January. [Downloadable!] (restricted)
  16. Russell, Helen & Layte, Richard & Maitre, Bertrand & O'Connell, Philip J. & Whelan, Christopher T., 2004. "Work-Poor Households: The Welfare Implications of Changing Household Employment Patterns," Research Series, Economic and Social Research Institute (ESRI), number PRS52.
  17. Dargay, Joyce, 2007. "The effect of prices and income on car travel in the UK," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(10), pages 949-960, December. [Downloadable!] (restricted)
  18. Hensher, David A, et al, 1989. "An Empirical Model of Household Automobile Holdings," Applied Economics, Taylor and Francis Journals, vol. 21(1), pages 35-57, January.
  19. Nolan, Anne, 2002. "The Determinants of Urban Households' Transport Decisions: A Microeconometric Study using Irish Data," Royal Economic Society Annual Conference 2002 150, Royal Economic Society. [Downloadable!]
  20. Whelan, Gerard, 2007. "Modelling car ownership in Great Britain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(3), pages 205-219, March. [Downloadable!] (restricted)
  21. Train, Kenneth, 1980. "A Structured Logit Model of Auto Ownership and Mode Choice," Review of Economic Studies, Blackwell Publishing, vol. 47(2), pages 357-70, January. [Downloadable!] (restricted)
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