Aggregate estimation of the price elasticity of demand for public transport in integrated fare systems: The case of Transantiago
Date
2013
Type:
Artículo
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Abstract
Price elasticities of demand for public transport are a key determinant in evaluating the impact of
changes in fares on user flows, yet in many integrated fare transit systems, estimating these indicators is
often hampered by two realities: the fare changes for different modes are implemented simultaneously
and their magnitudes are highly correlated. This strong collinearity is particularly problematic in linear or
log-linear models, commonly used for elasticity estimation, and in a case study of Santiago, Chile, robust
results with such specifications proved elusive. This paper presents a method based on discrete choice
models to estimate the elasticities in an integrated fare system that overcomes these econometric
problems, generating results that are both robust and consistent with those reported in the literature.
The proposed models are also easy to update and evaluate.
Description
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Citation
Transport Policy, 2013, 29: 178–185
Keywords
Elasticities, Integrated fare, Public transport, Collinearity, Endogeneity