IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v100y2017icp311-318.html
   My bibliography  Save this article

Fare evasion in public transport: A time series approach

Author

Listed:
  • Troncoso, Rodrigo
  • de Grange, Louis

Abstract

An econometric model is presented that identifies the main variables explaining evasion of fare payment on a public transport system. The model uses a cointegration approach. The model parameters are estimated using data from the Santiago (Chile) bus system, where evasion has been measured at approximately 28%. The main results of the model are that (i) a 10% increase in the fare raises evasion by 2 percentage points and (ii) a 10% increase in inspections lowers evasion by 0.8 percentage points. An increase in unemployment, the third explanatory variable in the model, tends to induce a decrease in evasion, and vice versa. This counterintuitive finding may be explained by the fact that those most vulnerable to job loss, and more likely to evade than the average user due to economic necessity, tend to reduce their use of the bus system when unemployment rises and increase it when unemployment falls.

Suggested Citation

  • Troncoso, Rodrigo & de Grange, Louis, 2017. "Fare evasion in public transport: A time series approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 311-318.
  • Handle: RePEc:eee:transa:v:100:y:2017:i:c:p:311-318
    DOI: 10.1016/j.tra.2017.04.029
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856416308795
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tra.2017.04.029?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John Y. Campbell & Pierre Perron, 1991. "Pitfalls and Opportunities: What Macroeconomists Should Know about Unit Roots," NBER Chapters, in: NBER Macroeconomics Annual 1991, Volume 6, pages 141-220, National Bureau of Economic Research, Inc.
    2. P. C. B. Phillips & S. N. Durlauf, 1986. "Multiple Time Series Regression with Integrated Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(4), pages 473-495.
    3. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    4. Muñoz, Juan Carlos & de Grange, Louis, 2010. "On the development of public transit in large cities," Research in Transportation Economics, Elsevier, vol. 29(1), pages 379-386.
    5. Bucciol, Alessandro & Landini, Fabio & Piovesan, Marco, 2013. "Unethical behavior in the field: Demographic characteristics and beliefs of the cheater," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 248-257.
    6. Paulley, Neil & Balcombe, Richard & Mackett, Roger & Titheridge, Helena & Preston, John & Wardman, Mark & Shires, Jeremy & White, Peter, 2006. "The demand for public transport: The effects of fares, quality of service, income and car ownership," Transport Policy, Elsevier, vol. 13(4), pages 295-306, July.
    7. Delbosc, Alexa & Currie, Graham, 2016. "Cluster analysis of fare evasion behaviours in Melbourne, Australia," Transport Policy, Elsevier, vol. 50(C), pages 29-36.
    8. Cordera, Ruben & Canales, Cesar & dell’Olio, Luigi & Ibeas, Angel, 2015. "Public transport demand elasticities during the recessionary phases of economic cycles," Transport Policy, Elsevier, vol. 42(C), pages 173-179.
    9. Barabino, Benedetto & Salis, Sara & Useli, Bruno, 2013. "A modified model to curb fare evasion and enforce compliance: Empirical evidence and implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 29-39.
    10. Barabino, Benedetto & Salis, Sara & Useli, Bruno, 2015. "What are the determinants in making people free riders in proof-of-payment transit systems? Evidence from Italy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 184-196.
    11. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
    12. Stock, James H, 1987. "Asymptotic Properties of Least Squares Estimators of Cointegrating Vectors," Econometrica, Econometric Society, vol. 55(5), pages 1035-1056, September.
    13. Guarda, Pablo & Galilea, Patricia & Paget-Seekins, Laurel & Ortúzar, Juan de Dios, 2016. "What is behind fare evasion in urban bus systems? An econometric approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 84(C), pages 55-71.
    14. Polinsky, Mitchell & Shavell, Steven, 1979. "The Optimal Tradeoff between the Probability and Magnitude of Fines," American Economic Review, American Economic Association, vol. 69(5), pages 880-891, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oscar Egu & Patrick Bonnel, 2020. "Can we estimate accurately fare evasion without a survey? Results from a data comparison approach in Lyon using fare collection data, fare inspection data and counting data," Public Transport, Springer, vol. 12(1), pages 1-26, March.
    2. Boyd, Colin, 2020. "Revisiting the foundations of fare evasion research," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 313-324.
    3. Felipe González & Carolina Busco & Katheryn Codocedo, 2019. "Fare Evasion in Public Transport: Grouping Transantiago Users’ Behavior," Sustainability, MDPI, vol. 11(23), pages 1-17, November.
    4. Taslim Alade & Jurian Edelenbos & Alberto Gianoli, 2020. "A Sustainable Approach to Innovation Adoption in Light-Rail Transport," Sustainability, MDPI, vol. 12(3), pages 1-22, February.
    5. Zis, Thalis P.V., 2021. "A game theoretic approach on improving sulphur compliance," Transport Policy, Elsevier, vol. 114(C), pages 127-137.
    6. Ramos, Raúl & Silva, Hugo E., 2023. "Fare evasion in public transport: How does it affect the optimal design and pricing?," Transportation Research Part B: Methodological, Elsevier, vol. 176(C).
    7. Allen, Jaime & Muñoz, Juan Carlos & Ortúzar, Juan de Dios, 2019. "On evasion behaviour in public transport: Dissatisfaction or contagion?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 626-651.
    8. Mehdizadeh, Milad & Shariat-Mohaymany, Afshin, 2020. "Who are more likely to break the rule of congestion charging? Evidence from an active scheme with no referendum voting," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 63-79.
    9. Telecký Martin & Čejka Jiří & Guchenko Mykola, 2018. "Determining of Provable Loss in Municipal Bus Transport and Its Influence on Public Budgets in Sparsely Populated Areas of the Czech Republic," LOGI – Scientific Journal on Transport and Logistics, Sciendo, vol. 9(1), pages 105-113, May.
    10. Celse, Jérémy & Grolleau, Gilles, 2023. "Fare evasion and information provision: What information should be provided to reduce fare-evasion?," Transport Policy, Elsevier, vol. 138(C), pages 119-128.
    11. Guzman, Luis A. & Arellana, Julian & Camargo, José Pablo, 2021. "A hybrid discrete choice model to understand the effect of public policy on fare evasion discouragement in Bogotá's Bus Rapid Transit," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 140-153.
    12. Munizaga, Marcela A. & Gschwender, Antonio & Gallegos, Nestor, 2020. "Fare evasion correction for smartcard-based origin-destination matrices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 307-322.
    13. Louise Sträuli & Wojciech Kębłowski, 2023. "‘The gates of paradise are open’: Contesting and producing publicness in the Brussels metro through fare evasion," Urban Studies, Urban Studies Journal Limited, vol. 60(15), pages 3126-3142, November.
    14. Antonín Pavlíček & František Sudzina, 2020. "Intergroup Comparison of Personalities in the Preferred Pricing of Public Transport in Rush Hours: Data Revisited," Sustainability, MDPI, vol. 12(12), pages 1-9, June.
    15. Elmar Wilhelm M. Fürst & David M. Herold, 2018. "Fare Evasion and Ticket Forgery in Public Transport: Insights from Germany, Austria and Switzerland," Societies, MDPI, vol. 8(4), pages 1-16, October.
    16. Porath, Keiko & Galilea, Patricia, 2020. "Temporal analysis of fare evasion in Transantiago: A socio-political view," Research in Transportation Economics, Elsevier, vol. 83(C).
    17. Benedetto Barabino & Cristian Lai & Alessandro Olivo, 2020. "Fare evasion in public transport systems: a review of the literature," Public Transport, Springer, vol. 12(1), pages 27-88, March.
    18. Brotcorne, L. & Escalona, P. & Fortz, B. & Labbé, M., 2021. "Fare inspection patrols scheduling in transit systems using a Stackelberg game approach," Transportation Research Part B: Methodological, Elsevier, vol. 154(C), pages 1-20.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ramos, Raúl & Silva, Hugo E., 2023. "Fare evasion in public transport: How does it affect the optimal design and pricing?," Transportation Research Part B: Methodological, Elsevier, vol. 176(C).
    2. Guzman, Luis A. & Arellana, Julian & Camargo, José Pablo, 2021. "A hybrid discrete choice model to understand the effect of public policy on fare evasion discouragement in Bogotá's Bus Rapid Transit," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 140-153.
    3. Porath, Keiko & Galilea, Patricia, 2020. "Temporal analysis of fare evasion in Transantiago: A socio-political view," Research in Transportation Economics, Elsevier, vol. 83(C).
    4. Felipe González & Carolina Busco & Katheryn Codocedo, 2019. "Fare Evasion in Public Transport: Grouping Transantiago Users’ Behavior," Sustainability, MDPI, vol. 11(23), pages 1-17, November.
    5. repec:zbw:rwirep:0557 is not listed on IDEAS
    6. Pierre Perron & Gabriel Rodríguez, "undated". "Residuals-based Tests for Cointegration with GLS Detrended Data," Boston University - Department of Economics - Working Papers Series wp2015-017, Boston University - Department of Economics, revised 19 Oct 2015.
    7. Allen, Jaime & Muñoz, Juan Carlos & Ortúzar, Juan de Dios, 2019. "On evasion behaviour in public transport: Dissatisfaction or contagion?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 626-651.
    8. Benedetto Barabino & Sara Salis, 2019. "Moving Towards a More Accurate Level of Inspection Against Fare Evasion in Proof-of-Payment Transit Systems," Networks and Spatial Economics, Springer, vol. 19(4), pages 1319-1346, December.
    9. Celse, Jérémy & Grolleau, Gilles, 2023. "Fare evasion and information provision: What information should be provided to reduce fare-evasion?," Transport Policy, Elsevier, vol. 138(C), pages 119-128.
    10. Jäger, Philipp & Schmidt, Torsten, 2016. "The political economy of public investment when population is aging: A panel cointegration analysis," European Journal of Political Economy, Elsevier, vol. 43(C), pages 145-158.
    11. Elmar Wilhelm M. Fürst & David M. Herold, 2018. "Fare Evasion and Ticket Forgery in Public Transport: Insights from Germany, Austria and Switzerland," Societies, MDPI, vol. 8(4), pages 1-16, October.
    12. Franses,Philip Hans & Dijk,Dick van & Opschoor,Anne, 2014. "Time Series Models for Business and Economic Forecasting," Cambridge Books, Cambridge University Press, number 9780521520911.
    13. Delbosc, Alexa & Currie, Graham, 2016. "Cluster analysis of fare evasion behaviours in Melbourne, Australia," Transport Policy, Elsevier, vol. 50(C), pages 29-36.
    14. Serttas, Fatma Ozgu, 2010. "Essays on infinite-variance stable errors and robust estimation procedures," ISU General Staff Papers 201001010800002742, Iowa State University, Department of Economics.
    15. Gabriel Rodriguez & Pierre Perron, 2013. "Single-equation tests for Cointegration with GLS Detrended Data," Boston University - Department of Economics - Working Papers Series 2013-016, Boston University - Department of Economics.
    16. Philipp Jäger & Torsten Schmidt, 2015. "The Political Economy of Public Investment when Population is Aging – A Panel Cointegration Analysis," Ruhr Economic Papers 0557, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    17. Ekaterini Panopoulou, 2005. "A Resolution of the Fisher Effect Puzzle: A Comparison of Estimators," Money Macro and Finance (MMF) Research Group Conference 2005 18, Money Macro and Finance Research Group.
    18. Arai, Yoichi, 2016. "Testing For Linearity In Regressions With I(1) Processes," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 57(1), pages 111-138, June.
    19. Martin Lettau & Sydney Ludvigson, 2001. "Consumption, Aggregate Wealth, and Expected Stock Returns," Journal of Finance, American Finance Association, vol. 56(3), pages 815-849, June.
    20. Matteo Barigozzi & Marco Lippi & Matteo Luciani, 2016. "Non-Stationary Dynamic Factor Models for Large Datasets," Finance and Economics Discussion Series 2016-024, Board of Governors of the Federal Reserve System (U.S.).
    21. Quintos, Carmela E., 1998. "Analysis of cointegration vectors using the GMM approach," Journal of Econometrics, Elsevier, vol. 85(1), pages 155-188, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:100:y:2017:i:c:p:311-318. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.