Public bus transport demand elasticities in India

A number of static and dynamic specifications of a log linear demand function for public transport are estimated using aggregate panel data for 22 Indian states over the period 1990 to 2001. Demand has been defined as total passenger kilometers to capture actual market transactions, while the regressors include public transit fare, per capita income, service quality, and other demographic and social variables. In all cases, transit demand is significant and inelastic to the fare. Service quality is the most significant policy variable. Finally, social and demographic variables highlight the complex nature of public bus transit demand in India.