Abstract
The aim of the study is to calculate the price elasticity of demand for several local public transport products of a mid-sized German city (Jena) to estimate the potential subsidy requirements of social tariff concessions. The results of the ten year time series AR-model estimation show an elasticity coefficient of − 0.63 for a single ticket which is slightly higher in absolute terms compared with past studies but can be explained with the geographical structure of the examined city. The price elasticity of social concession-tariffs is significantly higher. This means that the income effect will be outweighed by the effect of lower demand of welfare recipients for (relatively inelastic) intra-city commuting.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: Raumforschung und Raumordnung | Spatial Research and Planning
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.