Back to Search
Start Over
Measuring long‐run gasoline price elasticities in urban travel demand.
- Source :
- RAND Journal of Economics (Wiley-Blackwell); Dec2021, Vol. 52 Issue 4, p945-994, 50p
- Publication Year :
- 2021
-
Abstract
- I develop a structural model of urban travel to estimate long‐run gasoline price elasticities. I model the demand for transportation services using a dynamic discrete‐choice model with switching costs and estimate it using a panel dataset with public market‐level data on automobile and public transit use in Chicago. Long‐run own‐ (automobile) and cross‐ (transit) price elasticities are substantially more elastic than short‐run elasticities. Elasticity estimates from static and myopic models are downward biased. I use the estimated model to evaluate the response to several counterfactual policies. A gasoline tax is less regressive after accounting for the long‐run substitution behavior. [ABSTRACT FROM AUTHOR]
- Subjects :
- GAS prices
ELASTICITY
PUBLIC transit
SWITCHING costs
GASOLINE taxes
COST estimates
Subjects
Details
- Language :
- English
- ISSN :
- 07416261
- Volume :
- 52
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- RAND Journal of Economics (Wiley-Blackwell)
- Publication Type :
- Academic Journal
- Accession number :
- 154346578
- Full Text :
- https://doi.org/10.1111/1756-2171.12397