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Measuring unobserved prices using the structural time-series model: The case of cycling

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  • Broadstock, David C.
  • Collins, Alan

Abstract

This study presents a means of determining a historic (generalised cost based) price index for cycling in the UK for the period 1949-2006 using annual demand data. By specifying demand as a function of generalised price and income and then applying a structural time-series model to elucidate the unobserved component of prices (while controlling for observed income levels), it is illustrated that the role of prices in influencing demand is non-trivial. Over the sample period price responses generally influence demand for cycling to a greater extent than income effects.

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  • Broadstock, David C. & Collins, Alan, 2010. "Measuring unobserved prices using the structural time-series model: The case of cycling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(4), pages 195-200, May.
    • Handle: RePEc:eee:transa:v:44:y:2010:i:4:p:195-200
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    Cited by:

    1. Gernot Sieg, 2016. "Costs and benefits of a bicycle helmet law for Germany," Transportation, Springer, vol. 43(5), pages 935-949, September.

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