Demand for Public Transportation in Colombia, 2000 – 2010

Abstract

Detailed knowledge of the demand for public transportation is indispensable for urban planning. In this study we estimate demand for public transportation in Colombia in the period 2000 – 2010. The demand model is estimated using aggregate information for each city, type of vehicle and service level. Using an individual utility model, we identify the revealed preferences of consumers. We then estimate the aggregate parameters of demand and the elasticities with respect to variables such as the cost of transportation, income, speed and frequency. The results show that the demand for public transportation in Colombia is inelastic to costs and elastic to changes in the average speed and in the frequency of routes. The results also show that public transportation in Colombia is an inferior good.