The asymmetric income effect on household vehicle ownership in Taiwan: A threshold cointegration approach
This paper uses the asymmetric threshold cointegration test to examine the asymmetric relationship between household income and vehicle ownership in Taiwan, presenting estimated asymmetric error correction models. The empirical data include information on household income, car ownership and motorcycle ownership in different regions from 1974 to 2009. The results show that, first, motorcycle ownership is asymmetrically cointegrated with household income in each region, and car ownership is asymmetrically cointegrated with household income in all regions except Taipei city. Second, both car and motorcycle ownership levels increase faster than they decrease in the asymmetric adjustment of their long-run relationship. Third, sensitivity tests for the period 1987–2009 show that the cointegration relationship of the car ownership equations vanished. Finally, we find evidence on the effects of household income on motorcycle ownership, and the effects of income variables on car and motorcycle ownership are dissimilar. This study exhibits different results across regions. These findings may be related to the development of public transit system in each region.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 46 (2012)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
References listed on IDEAS
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.:
- Kwiatkowski, D. & Phillips, P.C.B. & Schmidt, P., 1990.
"Testing the Null Hypothesis of Stationarity Against the Alternative of Unit Root : How Sure are we that Economic Time Series have a Unit Root?,"
8905, Michigan State - Econometrics and Economic Theory.
- Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
- Denis Kwiatkowski & Peter C.B. Phillips & Peter Schmidt, 1991. "Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure Are We That Economic Time Series Have a Unit Root?," Cowles Foundation Discussion Papers 979, Cowles Foundation for Research in Economics, Yale University.
- Dargay, Joyce & Gately, Dermot, 1999. "Income's effect on car and vehicle ownership, worldwide: 1960-2015," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(2), pages 101-138, February.
- Lardic, Sandrine & Mignon, Valerie, 2006. "The impact of oil prices on GDP in European countries: An empirical investigation based on asymmetric cointegration," Energy Policy, Elsevier, vol. 34(18), pages 3910-3915, December.
- 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.
- 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.
- Whelan, Gerard, 2007. "Modelling car ownership in Great Britain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(3), pages 205-219, March.
- Banerjee, Anindya & Dolado, Juan J. & Galbraith, John W. & Hendry, David, 1993. "Co-integration, Error Correction, and the Econometric Analysis of Non-Stationary Data," OUP Catalogue, Oxford University Press, number 9780198288107, December.
- Kapetanios, George & Shin, Yongcheol & Snell, Andy, 2003. "Testing for a unit root in the nonlinear STAR framework," Journal of Econometrics, Elsevier, vol. 112(2), pages 359-379, February.
- Enders, Walter & Siklos, Pierre L, 2001.
"Cointegration and Threshold Adjustment,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 19(2), pages 166-76, April.
- Tom Doan, . "ENDERSIKLOS: RATS procedure to perform Enders-Siklos test for cointegration with threshold effect," Statistical Software Components RTS00064, Boston College Department of Economics.
- Tom Doan, . "RATS programs to replicate Enders-Siklos(2001) JBES paper on threshold cointegration," Statistical Software Components RTZ00053, Boston College Department of Economics.
- Giuliano, Genevieve & Dargay, Joyce, 2006. "Car ownership, travel and land use: a comparison of the US and Great Britain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(2), pages 106-124, February.
- 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.
- Lardic, Sandrine & Mignon, Valérie, 2008. "Oil prices and economic activity: An asymmetric cointegration approach," Energy Economics, Elsevier, vol. 30(3), pages 847-855, May.
- Bhat, Chandra R. & Guo, Jessica Y., 2007. "A comprehensive analysis of built environment characteristics on household residential choice and auto ownership levels," Transportation Research Part B: Methodological, Elsevier, vol. 41(5), pages 506-526, June.
- Nolan, Anne, 2010. "A dynamic analysis of household car ownership," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(6), pages 446-455, July.
- Cullinane, S., 2002. "The relationship between car ownership and public transport provision: a case study of Hong Kong," Transport Policy, Elsevier, vol. 9(1), pages 29-39, January.
- Matas, Anna & Raymond, José-Luis & Roig, José-Luis, 2009.
"Car ownership and access to jobs in Spain,"
Transportation Research Part A: Policy and Practice,
Elsevier, vol. 43(6), pages 607-617, July.
When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:46:y:2012:i:4:p:696-706. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.