Striking Evidence? Demand Persistence for Inter-City Buses from German Railway Strikes
Discussion Papers in Economics from University of Munich, Department of Economics
This paper investigates the effect of the largest rail strikes in German history in 2014-2015 on long-distance buses – a newly liberalized market. Using a novel dataset of detailed bus ticket sales and rail cancellations, I find that the primary channel that drives ticket sales during the strike is whether the absolute bus travel time was sufficiently short. In a difference-indifferences framework, I exploit this variation to identify any demand persistence. Although the common trend assumption does not seem to be completely tenable in the given context, my results point to a persistent effect on the ticket sales for inter-city buses on the affected routes.
Keywords: Transportation; Long-Run Demand Effects; Intermodal Substitution; Strike (search for similar items in EconPapers)
JEL-codes: L92 R41 C81 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-his, nep-tre and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenec:31768
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