Event Title

Demand for TriMet Bus and Light Rail Systems

Location

Jereld R. Nicholson Library

Date

5-17-2013 3:00 PM

End Date

5-17-2013 4:30 PM

Subject Area

Economics (applied)

Description

This study estimates the demand for bus and MAX light-rail ridership in the Portland, Oregon area from 1987 to 2011 using a time series model. It estimates the elasticity of ridership with respect to fares, income, population, motor fuel prices, and the number of MAX rail stations. It finds that the bus and the MAX have significantly different fare elasticities. We observe that riders have fare inelastic ridership demand for bus transit and fare elastic ridership demand for MAX transit. Based on the estimated effect of income on ridership demand, we find that bus service is an inferior good and MAX ridership is a normal good. These results are consistent with the fare and income elasticity findings of other studies and make intuitive sense. This suggests that although both modes of public transit in the Portland area operate at the same price level without competition from other public transit agencies, demand behavior for each service is not the same.

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May 17th, 3:00 PM May 17th, 4:30 PM

Demand for TriMet Bus and Light Rail Systems

Jereld R. Nicholson Library

This study estimates the demand for bus and MAX light-rail ridership in the Portland, Oregon area from 1987 to 2011 using a time series model. It estimates the elasticity of ridership with respect to fares, income, population, motor fuel prices, and the number of MAX rail stations. It finds that the bus and the MAX have significantly different fare elasticities. We observe that riders have fare inelastic ridership demand for bus transit and fare elastic ridership demand for MAX transit. Based on the estimated effect of income on ridership demand, we find that bus service is an inferior good and MAX ridership is a normal good. These results are consistent with the fare and income elasticity findings of other studies and make intuitive sense. This suggests that although both modes of public transit in the Portland area operate at the same price level without competition from other public transit agencies, demand behavior for each service is not the same.