Possible Implications of the Price, Cross-Price and Income Elasticities of the Demand for Public Road Transport in the Cape Metropolitan Area - a Co-Integration Analysis

S E Neubrech and W J Pienaar

Studies in Economics and Econometrics, 2001, vol. 25, issue 3, 57-74

Abstract: This article provides an application of co-integration analysis within the context of public transport services in the Cape Metropolitan Area. The results of the study reveal the price, cross-price and income elasticity of demand for minibus taxi and public bus transport in the Cape Metropolitan Area. These empirically derived results have a number of implications for the present commuter transport subsidy system and the regulation of minibus taxis. Greater co-ordination between minibus taxi and public bus transport by means of a tender system is proposed.

Date: 2001
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DOI: 10.1080/10800379.2001.12106318

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