The economic effects of government regulation: Evidence from the New York taxicab market
Date
2013-01-24
Authors
Çetin, Tamer
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier Science
Abstract
This paper empirically investigates the economic effects of government regulation in a regulated taxicab market. We use a cointegration model with structural breaks to test the hypothesis that government regulation increases the price of the regulated good and/or causes the monopoly price. We examine the New York taxicab market and argue that regulation brings about artificial rents by increasing medallion prices, and an increase in medallion prices gives rises to upward pressure on taxi fares. The evidence presented shows that regulation of the New York taxicab market increases medallion prices, and this increase in medallion prices pressures on taxi fares.
Description
Keywords
Business & economics, Transportation, Taxicabs, Entry regulation, Price controls, Elasticity, Cointegration, Structural breaks, Unit-root, Entry Regulation, Costs, Price, New York [United States], United States, Cointegration analysis, Elasticity, Monopoly, Public transport, Standard (regulation), Transportation economics
Citation
Çetin, T. vd. (2013). ''The economic effects of government regulation: Evidence from the New York taxicab market''. Transport Policy, 25, 169-177.