IDEAS home Printed from https://ideas.repec.org/a/ris/qjatoe/0076.html
   My bibliography  Save this article

The Impact of Fuel Price on Road Transportation Demand: Time-Varying Parameter and Kalman-Filter Approach

Author

Listed:
  • Feshari, Majid

    () (Assistant Professor of Economics, Kharazmi University)

  • Ghafouri Barjin , Hanieh

    () (M.A. in Economics and Social Engineering System, Kharazmi University)

Abstract

In recent years, the increase of fuel price and implementation of targeted subsidies have the different effects on the economic sectors and especially on the road transportation sector. For this, the road transportation sector has been considered as main sectors in transportation system. The purpose of this paper is to investigate the effect of fuel price on the road transportation demand during 1997-2014. The empirical econometric model has been estimated by TVP and Kalman-Filter algorithm. The main findings of this study reveal that the fuel price and age of transportation system have negative and other explanatory variables such as national income and numbers of vehicles have positive and significant impact on the road transportation in Iran during the period of study. Moreover, the targeted subsidies rule in Iran has led to decrease of road transportation shipment. Hence, the effects of new vehicle and national income are positive in final state and time varying situations.

Suggested Citation

  • Feshari, Majid & Ghafouri Barjin , Hanieh, 2017. "The Impact of Fuel Price on Road Transportation Demand: Time-Varying Parameter and Kalman-Filter Approach," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 4(2), pages 103-126, September.
  • Handle: RePEc:ris:qjatoe:0076
    as

    Download full text from publisher

    File URL: http://ecoj.tabrizu.ac.ir/article_6475_62d178c3c3a60eef75e21175284b1b23.pdf
    File Function: Full text
    Download Restriction: no

    More about this item

    Keywords

    Road transportation system; Fuel price; Time-varying parameter; Kalman-filter.;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0076. 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: (Sakineh Sojoodi). General contact details of provider: http://edirc.repec.org/data/fetabir.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.