This is a past event
The seminar will be held via MS Teams and in Edward Wright S86 on Wednesday 27 September 2023 from 15:00 to 16:15 (1 hour talk and 15 minutes Q&A).
Join Dr Shashika Rathnayaka, Research Fellow at The Rowett Institute in University of Aberdeen. Dr Rathnayaka’s research fields are Agricultural Economics, Applied Economics, and Econometrics.
Abstract:This paper investigates the substitution/complement demand relationship between private transport, public transport, and communication in four developed countries, namely, Australia, Canada, the United Kingdom (UK), and the United States of America (USA) using the most recent (1995-2019) consumption expenditure data. Employing the static and dynamic versions of the Linear Approximated Almost Ideal Demand System (LA-AIDS), we computed short-run and long-run unconditional demand elasticities. The demand for communication is income elastic in both the short-run and long-run in four countries. In the short run, in four countries, the demand for private transport, public transport, and communication is price inelastic. We also found that in general, private and public transport are substitutes. This clearly gives policy direction to promote public transport and limit private car use to reduce an individual’s carbon footprint. Moreover, we found more evidence suggesting that communication is a substitute for public or private transport. Therefore, promoting work-from-home and online shopping are potential solutions for traffic congestion in metropolitan cities. We tested whether there are similarities among consumers in four countries using a likelihood ratio test. Results reveal that consumption patterns of transport and communication are dissimilar across four countries, however, they are similar in Australia and the UK.
- Speaker
- Dr Shashika Rathnayaka
- Hosted by
- University of Aberdeen Business School
- Venue
- Edward Wright Building
- Contact
-
https://www.abdn.ac.uk/business/