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The economic effects of government regulation: Evidence from the New York taxicab market

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  • Çetin, Tamer
  • Yasin Eryigit, Kadir

Abstract

This paper empirically investigates the economic effects of government regulation in a regulated taxicab market. We use a cointegration model with structural breaks to test the hypothesis that government regulation increases the price of the regulated good and/or causes the monopoly price. We examine the New York taxicab market and argue that regulation brings about artificial rents by increasing medallion prices, and an increase in medallion prices gives rises to upward pressure on taxi fares. The evidence presented shows that regulation of the New York taxicab market increases medallion prices, and this increase in medallion prices pressures on taxi fares.

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  • Çetin, Tamer & Yasin Eryigit, Kadir, 2013. "The economic effects of government regulation: Evidence from the New York taxicab market," Transport Policy, Elsevier, vol. 25(C), pages 169-177.
    • Handle: RePEc:eee:trapol:v:25:y:2013:i:c:p:169-177
    DOI: 10.1016/j.tranpol.2012.11.011
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    Cited by:

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    2. Salanova Grau, Josep Maria & Estrada, Miquel, 2019. "Social optimal shifts and fares for the Barcelona taxi sector," Transport Policy, Elsevier, vol. 76(C), pages 111-122.
    3. Thorsten Heilker & Gernot Sieg, 2017. "A duopoly of transportation network companies and traditional radio-taxi dispatch service agencies," Working Papers 24, Institute of Transport Economics, University of Muenster.
    4. Rongxiang Su & Zhixiang Fang & Ningxin Luo & Jingwei Zhu, 2018. "Understanding the Dynamics of the Pick-Up and Drop-Off Locations of Taxicabs in the Context of a Subsidy War among E-Hailing Apps," Sustainability, MDPI, vol. 10(4), pages 1-24, April.
    5. Cetin, Tamer & Deakin, Elizabeth, 2019. "Regulation of taxis and the rise of ridesharing," Transport Policy, Elsevier, vol. 76(C), pages 149-158.
    6. Shaaban, Khaled & Kim, Inhi, 2016. "Assessment of the taxi service in Doha," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 223-235.
    7. Lu Ling & Xinwu Qian & Satish V. Ukkusuri, 2023. "Impact of Transportation Network Companies on Labor Supply and Wages for Taxi Drivers," Papers 2307.13620, arXiv.org.

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