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Possible Implications of the Price, Cross-Price and Income Elasticities of the Demand for Public Road Transport in the Cape Metropolitan Area - a Co-Integration Analysis

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  • S E Neubrech
  • W J Pienaar

Abstract

This article provides an application of co-integration analysis within the context of public transport services in the Cape Metropolitan Area. The results of the study reveal the price, cross-price and income elasticity of demand for minibus taxi and public bus transport in the Cape Metropolitan Area. These empirically derived results have a number of implications for the present commuter transport subsidy system and the regulation of minibus taxis. Greater co-ordination between minibus taxi and public bus transport by means of a tender system is proposed.

Suggested Citation

  • S E Neubrech & W J Pienaar, 2001. "Possible Implications of the Price, Cross-Price and Income Elasticities of the Demand for Public Road Transport in the Cape Metropolitan Area - a Co-Integration Analysis," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 25(3), pages 57-74, December.
    • Handle: RePEc:taf:rseexx:v:25:y:2001:i:3:p:57-74
    DOI: 10.1080/10800379.2001.12106318
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