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The structure of intercity travel demands in Canada: Theory tests and empirical results

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  • Oum, Tae H.
  • Gillen, David W.

Abstract

This paper presents results of an econometric study study of intercity travel demands in Canada, 1961-1976. A translog form of reciprocal indirect utility function is used to test the structure of preferences in five demand sectors: three travel modes, goods and other services. Travel sector preferences are found to be time- and season varying but independent of average weekly work hours. The aggregate results indicate that the demands for all three passenger modes are price-elastic; bus and rail exhibit moderate complementarity, while rail and air are weakly complementary. The most important result derived from our tests of separability was that the demand system for the three passenger modes is inextricably tied to the rest of the economy, and therefore, may not be studied in isolation from the goods and other services sectors.

Suggested Citation

  • Oum, Tae H. & Gillen, David W., 1983. "The structure of intercity travel demands in Canada: Theory tests and empirical results," Transportation Research Part B: Methodological, Elsevier, vol. 17(3), pages 175-191, June.
  • Handle: RePEc:eee:transb:v:17:y:1983:i:3:p:175-191
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    1. S. Selvanathan, 1987. "Do OECD Consumers Obey Demand Theory?," Economics Discussion / Working Papers 87-04, The University of Western Australia, Department of Economics.
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    Cited by:

    1. Kremers, Hans & Nijkamp, Peter & Rietveld, Piet, 2002. "A meta-analysis of price elasticities of transport demand in a general equilibrium framework," Economic Modelling, Elsevier, vol. 19(3), pages 463-485, May.
    2. Germa Manel Bel Queralt, 1996. "Autovias y ferrocarriles: un modelo para evaluar efectos intermodales de la politica de infaestructuras," Working Papers in Economics 1, Universitat de Barcelona. Espai de Recerca en Economia.

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