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A macroscopic taxi model for passenger demand, taxi utilization and level of services


  • Hai Yang
  • Yan Lau
  • Sze Wong
  • Hong Lo


In most urban areas taxi services are subject to various types of regulation such as entry restriction and price control. However, effective intervention depends on generating and using suitable information on the demand-supply equilibrium of the taxi market. This paper develops a simultaneous equation system of passenger demand, taxi utilization and level of services based on a taxi service situation found in the urban area of Hong Kong over the last ten years. A set of variables is introduced including number of licensed taxis, taxi fare, disposable income, occupied taxi journey time as exogenous variables and daily taxi passenger demand, passenger waiting time, taxi availability, taxi utilization and average taxi waiting time as endogenous variables. These variables are coupled together through a system of nonlinear simultaneous equations whose parameters are estimated from survey data. The simultaneous equation system can be used to obtain useful regulatory information to assist with the decisions concerning the restriction over the number of taxi licenses and the fixing of the taxi fare structure as well as a range of service quality control. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Hai Yang & Yan Lau & Sze Wong & Hong Lo, 2000. "A macroscopic taxi model for passenger demand, taxi utilization and level of services," Transportation, Springer, vol. 27(3), pages 317-340, June.
  • Handle: RePEc:kap:transp:v:27:y:2000:i:3:p:317-340
    DOI: 10.1023/A:1005289504549

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    References listed on IDEAS

    1. Arnott, Richard, 1996. "Taxi Travel Should Be Subsidized," Journal of Urban Economics, Elsevier, vol. 40(3), pages 316-333, November.
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    Cited by:

    1. Oren Bahat & Shlomo Bekhor, 2016. "Incorporating Ridesharing in the Static Traffic Assignment Model," Networks and Spatial Economics, Springer, vol. 16(4), pages 1125-1149, December.
    2. repec:eee:trapol:v:63:y:2018:i:c:p:157-164 is not listed on IDEAS
    3. repec:kap:netspa:v:17:y:2017:i:1:d:10.1007_s11067-016-9324-z is not listed on IDEAS
    4. Miaoyi Li & Lei Dong & Zhenjiang Shen & Wei Lang & Xinyue Ye, 2017. "Examining the Interaction of Taxi and Subway Ridership for Sustainable Urbanization," Sustainability, MDPI, Open Access Journal, vol. 9(2), pages 1-12, February.
    5. repec:eee:transb:v:100:y:2017:i:c:p:222-254 is not listed on IDEAS
    6. Ogus, Anthony, 2002. "Comparing Regulatory Systems: Institutions, Processes and Legal Forms in Industrialised Countries," Centre on Regulation and Competition (CRC) Working papers 30609, University of Manchester, Institute for Development Policy and Management (IDPM).
    7. Ofentse Mokwena, 2016. "Paratransit Mesoeconomy: Control Measures From The Supply Side?," Proceedings of Economics and Finance Conferences 3205591, International Institute of Social and Economic Sciences.
    8. Gholami, Ali & Taghizadeh, Yaser & Tian, Zong, 2014. "Classification of taxi khattee (jitney) lines based on topography and line cost indices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 239-249.


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