This paper tests the hypothesis that transit input demand is inelastic. A homogeneous translog cost model is developed from which the elasticities of input demand are calculated. It is found that the hypothesis is true for labor demand, partly true for diesel fuel demand and not true for electricity demand in the relevant range. That is, the hypothesis does not hold for electricity's share of operating cost smaller than 26.42%. It is suggested that costs of those inputs with inelastic demand should be controlled and that public policy should be directed at investing in electricity-efficient vehicles. It is also suggested that further research should be conducted to provide more empirical evidence on the above hypothesis.

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  • Corporate Authors:

    Institute for Transportation, Incorporated

    1410 Duke University Road
    Durham, NC  United States  27705
  • Authors:
    • Kofi, O
  • Publication Date: 1983

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Filing Info

  • Accession Number: 00390107
  • Record Type: Publication
  • Source Agency: Engineering Index
  • Files: TRIS
  • Created Date: Oct 30 1984 12:00AM