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An investigation of the impacts of economic conditions on vehicle miles traveled: a vector error-correction approach

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  • Sikka, Nikhil
  • Sun, Jielin

Abstract

In this paper, we estimate the long-run gasoline price and income elasticity of VMT for the period 2000-2008. Most of the previous studies use the very common classes of time series methods that are the autoregressive integrated moving average (ARIMA) models. We advance the analytical framework to include a vector error-correction (VEC) regression technique that overcomes several limitations of ARIMA models. We find that long-run gasoline price elasticity to VMT ranges from -0.31 to -0.88, and income elasticity ranges from 0.18 to 0.49.

Suggested Citation

  • Sikka, Nikhil & Sun, Jielin, 2009. "An investigation of the impacts of economic conditions on vehicle miles traveled: a vector error-correction approach," 50th Annual Transportation Research Forum, Portland, Oregon, March 16-18, 2009 207734, Transportation Research Forum.
    • Handle: RePEc:ags:ndtr09:207734
    DOI: 10.22004/ag.econ.207734
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    References listed on IDEAS

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