DISAGGREGATING THE DEMAND ELASTICITIES OF RAIL SERVICES AND ITS INFLUENCING FACTOR IN PAKISTAN

Authors

  • Nighat Jahan Applied Economics Research Center, University of Karachi Pakistan
  • Muhammad Imran Khan Applied Economics Research Center, University of Karachi Pakistan
  • Kamran Abbas Naqvi Applied Economics Research Center, University of Karachi Pakistan

DOI:

https://doi.org/10.52567/pjsr.v4i2.523

Abstract

Public transport has become a challenge to supply on one side and to afford it on the other side. There are several issues in practical life, which can be associated with the demand for rail transport service, required for sustaining a normal life. This study is based on estimating the determinants of rail transport demand and calculating income and price elasticities for different classes of train services in the short run. The study found that the substitution is dominant and that the own-price effect and income effect are dominant in all the effects. There is a positive relationship between income increase and demand for rail service for air-condition class passengers. The study found that substitute elasticities are positive for rail services, which indicates that rail tracks and buses are substitutes for each other. It entails that rail fares income and road density are constraining variables such that the change in these would consequently bring a change in rail passengers in each class, and fuel price is also significantly reallocating the passenger across each class while the opposite does not hold. The increase in road accidents increases the demand for rail services in Pakistan. 

Keywords: Demand elasticities, Rail services, Short run, ARDL, and Road Accidents

Author Biographies

  • Nighat Jahan, Applied Economics Research Center, University of Karachi Pakistan

    Scholar

  • Muhammad Imran Khan, Applied Economics Research Center, University of Karachi Pakistan

    Ph.D Scholar

  • Kamran Abbas Naqvi, Applied Economics Research Center, University of Karachi Pakistan

    Assistant Professor and Research Economist

Additional Files

Published

2022-06-30

Issue

Vol. 4 No. 2 (2022): Pakistan Journal of Social Research PJSR

Section

Research Article

License

Copyright (c) 2022 Nighat Jahan, Muhammad Imran Khan, Kamran Abbas Naqvi

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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How to Cite

[1]
“DISAGGREGATING THE DEMAND ELASTICITIES OF RAIL SERVICES AND ITS INFLUENCING FACTOR IN PAKISTAN”, Pak. J, Soc. Sci., vol. 4, no. 2, pp. 702–716, Jun. 2022, doi: 10.52567/pjsr.v4i2.523.