Conclusions
This paper provides estimates of fare and service elasticities for New York
City taxicabs. These estimates are based on a longitudinal dataset with a large
number of observations and coverage of all industry segments.
The period 1990 to 1996 includes significant variation in key variables: a downturn in the
local economy and the subsequent recovery; a significant erosion of the taxi
fare in real dollars and a 20 percent fare increase; and an increase in taxi service
supply (primarily due to existing cabs logging more mileage)