Measuring Long-Run Price Elasticities in Urban Travel Demand

Demand Elasticities for Highway Travel

An elasticity summarizes a large amount of information in a single number. Levels and distribution of incomes, price levels of the specific good and of substitute and complementary goods, preferences and tastes, transaction costs, etc., can, ceteris paribus, affect the measured value of any particular demand-price elasticity. The elasticity concept normalizes for the measurement scales (e.g., p...

Long-Run Price Elasticities of Demand for Credit: Evidence from a Countrywide Field Experiment in Mexico Executive Summary

The initial promise of microcredit, including such accolades as the 2006 Nobel Peace Prize, has given way to intense debate about if and when it is an effective development tool. Interest rates are central to this debate. Policymakers and donors promoting financial development have variously encouraged microfinance institutions (MFIs) to cut rates to expand access (under the assumption of elast...

Price Elasticities of Demand for Passenger Air Travel: a Meta-Analysis

The demand for air transport is largely determined by the spending capacity of customers. This paper aims to offer more insight into the determinants of price elasticities in the aviation sector. It seeks to identify both common and contrasting factors that influence the price elasticities, on the basis of a comparative analysis among a large number of empirical studies in this field. By means ...

Online and Offline Demand and Price Elasticities: Evidence from the Air Travel Industry

The Internet has brought consumers increased access to information to make purchase decisions. As markets come closer to perfect information, one of the expected outcomes is an increase in competition. One of the consequences is an increase in the price elasticity of demand, or the percent change in demand due to a percent change in price, because consumers are better able to compare offerings ...

The Long Run Demand for Lighting: Elasticities and Rebound Effects in Different Phases of Economic Development