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Demand and revenue implications of an integrated public transport policy. The case of

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Author Info
Anna Matas Prat () (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)
Abstract

One of the most popular options for promoting public transport use is the provision of an integrated and high quality public transport system. This was the strategy adopted by the regional government in Madrid in 1986 and since then public transport patronage has increased by more than 50%. This paper has two objectives. The first is to identify the factors underlying the significant increase in the demand for public transport in Madrid. To do this we estimate an aggregate demand function for bus and underground trips, which allows us to obtain the demand elasticities with respect to the main attributes of public transport services and also to calculate the long-term impact of changes in those explanatory variables on patronage. The second objective is to evaluate the impact on revenue derived from the introduction of the travel card scheme, and to discuss the consequences on revenue of changes in the relative fare levels of different types of ticket without substantially affecting patronage. This latter issue is addressed by estimating a matrix of own and cross-price elasticities for different ticket types.

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File URL: http://www.ecap.uab.es/RePEc/doc/wpdea0304.pdf
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Paper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number wpdea0304.

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Length: 31 pages
Date of creation: Mar 2003
Date of revision:
Handle: RePEc:uab:wprdea:wpdea0304

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. FitzRoy, Felix & Smith, Ian, 1998. "Public transport demand in Freiburg: why did patronage double in a decade?," Transport Policy, Elsevier, vol. 5(3), pages 163-173, June. [Downloadable!] (restricted)
  2. FitzRoy, Felix & Smith, Ian, 1999. "Season Tickets and the Demand for Public Transport," Kyklos, Blackwell Publishing, vol. 52(2), pages 219-38.
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  1. David Levinson & Andrew Odlyzko, 2007. "Too Expensive to Meter: The influence of transaction costs in transportation and communication," Working Papers 200802, University of Minnesota: Nexus Research Group, revised Feb 2007. [Downloadable!]
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