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Demand Functions for Services of Public Railway Passenger Transportation An Empirical Analysis for Slovenia.doc

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Demand Functions for Services of Public Railway Passenger Transportation An Empirical Analysis for Slovenia

DemandFunctionsforServicesofPublic RailwayPassengerTransportation: AnEmpiricalAnalysisforSlovenia JaniBek?o Thepaperdealswiththeestimationofdemandfunctionsforservices ofpublicrailwaypassengertransportationinthecaseofSlovenia.Six demandfunctionswereselectedandseparatelyinterpreted.Theaggre- gatevaluesofdemandelasticitiesreportedinthispapersuggestthatthe railwaypassengerdemandispriceandincomeinelastic.Coe?cientsof incomeelasticitybelowunityshowthattheservicesofrailwaypassen- gertransportationinSloveniacanbeclassi?edamongnormalgoods. Ahypotheticalincreaseinaveragerealfaresleadstoapercentagede- creaseinthenumberofpassengerstravellingbyrailthatissmallerthan thepercentageincreaseinfares.Theestimatedpriceelasticitiesimply that,intheshortrun,thereispotentialforimprovingrevenuesofthe railwayoperatorbyincreasingaveragerealfares. Introduction Intheliteraturewecan?nddetaileddescriptionsofarangeoffactors andtheirspeci?ccharacteristics(avarietyofproductso?eredbyrail- waycompanies,complexityoftheproductionprocessinrailwaytrans- portation,andabusinessenvironmentoftherailwaycompaniesthatis stronglya?ectedbystateregulations),whichexplainthedominantstruc- turalchangesinrailwaytransportationineitheracomprehensiveora speci?cmanner.However,therearefewerempiricalestimatesofthede- mandfunctionsforservicesofrailwaypassengertransportationthatare directlybasedonchosenparametersofconsumerbehavior.Theresultof theseanalysesistheidenti?cationofthedegreetowhichtheseservices areattractiveforaverageconsumerswithrespecttopricesandtheirin- come.Theopinionisthatthedemandforservicesofdi?erentmodesof transportationistypicallyinelastic,sincetransportationcostsarerela- tivelysmallincomparisonwiththevalueorutilityoftheseservices.But theestimatesforthecoe?cientofincomeandpriceelasticityofdemand forrailwaypassengerservicescanalsobeheterogeneous.Theoutcomes DrJaniBek?oisAssistantProfessorattheFacultyofEconomics andBusiness,UniversityofMaribor,Slovenia. ManagingGlobalTransitions?(?):???–??? ??? JaniBek?o