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Public Bus Transport Demand Elasticities in India

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Transportation Planning and Optimization Transport and Economic Policies Energy, Environment, and Transportation Policies

Abstract

A number of static and dynamic specifications of a log linear demand function for public transport are estimated using aggregate panel data for 22 Indian states over the period 1990 to 2001. Demand has been defined as total passenger kilometers to capture actual market transactions, while the regressors include public transit fare, per capita income, service quality, and other demographic and social variables. In all cases, transit demand is significant and inelastic to the fare. Service quality is the most significant policy variable. Finally, social and demographic variables highlight the complex nature of public bus transit demand in India.

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References

1991Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations 1995Another look at the instrumental variable estimation of error-components models 2021Econometric Analysis of Panel Data 1995Initial conditions and moment restrictions in dynamic panel data models 1981Biases in Dynamic Models with Fixed Effects 2003Analysis of Panel Data 1995What To Do (and Not to Do) with Time-Series Cross-Section Data 2004The demand for public transport: a practical guide

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