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The effect of prices and income on car travel in the UK


  • Dargay, Joyce


The objective of this paper is to analyse the factors determining household car travel, and specifically the effects of household income and the prices of cars and motor fuels, and to explore the intertemporal pattern of adjustment. The question of asymmetry in the response to rising and falling income is also addressed. Such asymmetry may be caused by habit or resistance to change or the tendency to acquire habits to consume more easily than to abandon them. The impact of prices, the speed of adjustment and the resistance to change will be important in determining the possibility of influencing travel behaviour and specifically car use. The study utilises repeated cross-section data from the annual UK Family Expenditure Surveys and employs a pseudo-panel methodology. The results are compared with those for car ownership estimated on the basis of similar models.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:transa:v:41:y:2007:i:10:p:949-960

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    References listed on IDEAS

    1. Dargay, Joyce M., 2002. "Determinants of car ownership in rural and urban areas: a pseudo-panel analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(5), pages 351-366, September.
    2. Verbeek, Marno & Nijman, Theo, 1992. "Can Cohort Data Be Treated as Genuine Panel Data?," Empirical Economics, Springer, vol. 17(1), pages 9-23.
    3. Dargay, Joyce & Gately, Dermot, 1997. "The demand for transportation fuels: Imperfect price-reversibility?," Transportation Research Part B: Methodological, Elsevier, vol. 31(1), pages 71-82, February.
    4. MacKinnon, James G. & White, Halbert & Davidson, Russell, 1983. "Tests for model specification in the presence of alternative hypotheses : Some further results," Journal of Econometrics, Elsevier, vol. 21(1), pages 53-70, January.
    5. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
    6. 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.
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