A model to estimate the price elasticity of demand for transport of goods by road

Theoretical considerations have been applied to the freight sector of transport in formulating a demand equation for road transport. A constant elasticity model is employed and it is demonstrated that the direct price elasticity and the cross price elasticity in the two mode case have approximately the same absolute value. Proxy variables have been employed to overcome the data difficulties which plague research in this sector. To allow for the influence of the intrinsic characteristics of originating cities, dummy variables have been used. Sufficient observations, to ensure reasonable accuracy of estimates, were obtained by using pooled cross section and time series data. Some estimation problems introduced by the pooling of data are outweighed by the high significance levels on the unbiased estimates. It is concluded from this analysis that the price elasticity of demand for road transport of goods between major Australian cities is approximately -2 (a).

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  http://arrbknowledge.com
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/909996113
• Authors:
  • Fitzpatrick, M D
  • Taplin, J H
• Conference:
  • Australian Road Research Board (ARRB) Conference, 6th, 1972, Canberra
• Publication Date: 1972

Language

• English

Media Info

• Pagination: 252-65
• Monograph Title: Introductory remarks to session 2, transport planning
• Serial:
  • Volume: 6
  • Issue Number: 2

Subject/Index Terms

• TRT Terms: Costs; Forecasting; Freight transportation; Mathematical models; Methodology; Travel demand management
• ATRI Terms: Cost; Demand elasticity; Forecast; Freight transport; Method; Modelling; Transport demand
• Subject Areas: Finance; Freight Transportation;

Filing Info

• Accession Number: 01442084
• Record Type: Publication
• Source Agency: ARRB
• ISBN: 909996113
• Files: ATRI
• Created Date: Aug 24 2012 11:59PM