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A model for estimation of the demand for on-street parking

Author

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  • Madsen, Edith
  • Mulalic, Ismir
  • Pilegaard, Ninette

Abstract

This paper presents a stylized econometric model for the demand for on-street parking with focus on estimation of the elasticity of demand with respect to the full cost of parking. The full cost of parking consists of a parking fee and the cost of searching for a vacant parking space (cruising). The cost of cruising is usually unobserved. Ignoring this issue implies a downward bias of the elasticity of demand with respect to the total cost of parking since the cost of cruising depends on the number of cars parked. We also demonstrate that, even when the cost of cruising is unobserved, the demand elasticity can be identified by extending the econometric model to include the spatial interaction between the parking facilities. We illustrate the model with on-street parking data from Copenhagen and find indications of a somewhat greater parking demand elasticity than is usually reported in the literature.

Suggested Citation

  • Madsen, Edith & Mulalic, Ismir & Pilegaard, Ninette, 2013. "A model for estimation of the demand for on-street parking," MPRA Paper 52301, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:52301
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    File URL: https://mpra.ub.uni-muenchen.de/52361/1/MPRA_paper_52301.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Gragera, Albert & Albalate, Daniel, 2016. "The impact of curbside parking regulation on garage demand," Transport Policy, Elsevier, vol. 47(C), pages 160-168.
    2. repec:eee:transa:v:101:y:2017:i:c:p:86-97 is not listed on IDEAS
    3. Zakharenko, Roman, 2016. "The time dimension of parking economics," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 211-228.
    4. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.

    More about this item

    Keywords

    on-street parking; demand estimation.;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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