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Estimating the Demand Function of Private Cars in Kurdistan region of Iraq-Erbil Governorate as a Model

Authors:

Abstract

Transportation has a major role in economic activities and a vital role in human life. This study has focused on the factors that affected the demand on chauffeur services in order to provide quantitative indicators such as income elasticity of demand on cars and others in indicators. Thus, this study helps individuals to make decisions which are related to demand on cars, such as import policies, taxes and fees imposed on cars, and their repercussions that help decision makers to be guided by these indicator. This study aimed to estimate the function of demand for chauffeur services in Erbil governorate and to estimate the income elasticity of demand for chauffeur services. The study has approached standard models as a quantitative method and applied the SPSS program, and the study collected data for (714) families in Erbil governorate during 2015. Eventually, the study concluded that most of the explanatory variables included in the model have a significant effect on car ownership and that the demand for cars increases with the increase in the number of family members.
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34
http://jaes.tu.edu.iq
Tikrit Journal of Administration
and Economics Sciences

ISSN: 1813-1719 (Print)
Estimating the Demand Function of Private Cars in Kurdistan
region of Iraq-Erbil Governorate as a Model
Assist. Prof. Dr. Yaseen O. Abdulaah
Prof. Dr. Saber Perdaood Othman
Collage of Administration and Economics
Collage of Administration and Economics
Salahadin University/Erbil
Salahadin University/Erbil
yaseen.abdulaah@su.edu.krd
saber.othman@su.edu.krd
Assist. Lecturer: Himdad Amin Abubakr
Collage of Administration and Economics
Salahadin University/Erbil
himdad.abubakr@su.edu.krd
Abstract:
Transportation has a major role in economic activities and a vital role in human
life. This study has focused on the factors that affected the demand on chauffeur
services in order to provide quantitative indicators such as income elasticity of demand
on cars and others in indicators. Thus, this study helps individuals to make decisions
which are related to demand on cars, such as import policies, taxes and fees imposed on
cars, and their repercussions that help decision makers to be guided by these indicator.
This study aimed to estimate the function of demand for chauffeur services in
Erbil governorate and to estimate the income elasticity of demand for chauffeur
services. The study has approached standard models as a quantitative method and
applied the SPSS program, and the study collected data for (714) families in Erbil
governorate during 2015
Eventually, the study concluded that most of the explanatory variables included
in the model have a significant effect on car ownership and that the demand for cars
increases with the increase in the number of family members
Keywords: demand for the car, logistic model, family income.
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34
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21

Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34
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
SPSS 20
714



Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34





yQualitative
 Binary   
    
Gujarati & Porter, 2009, 542-543
LPMLogitProbitTobit



2 , 1 = inX
Y1y0ui
1, 1
= =

E
1, 2Gujarati, 2009, 553-543
OLS1, 2 
Gujarati, 2009, 553-543
uiOLS
uiOLS
yipredicted
10

           
 LPM  
XX
XY
Gujarati & Porter, 2009, 549-553
1, 4
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34

 
    

   

X 

    0


1
Gujarati & Porter, 2009, 553-554

LogitProbit

Logit Model

 
PiXi
Xiii
         
1, 5

1, 6
Cumulative Logistic Distribution-Function
            
01
     
X
1, 5
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34
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1, 5

1, 7
1, 51, 8
6-2-2
Odds Ratio

1, 10
1, 11LX
 L
LogitLogit
1, 11Gujarati & Porter, 2009, 553-554

           
Studenmund and Johnson, 2017, 66-68
     

         



Y=1Y=0

m
N
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34

NW
NL
R1
0
H1
0

Ratio N18
Cirillo, 2010
AgeEkains, 2013, 22Scasny & Urban, 2011, 559
  G 1 
0Scasny and Urban, 2011, 559Ekains, 2013, 22
 EDrebee, et al., 2012, 23


   

   
 





          

    

1, 11




Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34



              


            
LRM  ML 1, 12

   


      
Logit

    
Odds
Ln OddsM
10000.487
           

           
             

GRH

10
Intercept
             
  

            
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34

             


      

AgeNW

    
OddsOdd ratio
  Age 
         
2530


   NW 
               

             
     

             


           





Odds
           
Anti Ln1, 10
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34

Odds
    



Multiplecative
Xi
Odds

1000Odds
 1.627         
Odds        

NWAgeOdds
e
        G  
RH
Odds1
      0        1

Odds Ratio: OR
OddsOdds Ratio
OROdds
ORORe
 OR
  
1000OR1.627
  
1000
160   


AgeNW OR  
Odds
Odds
Ratio NOdds
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34

            


            OR

OddsOR

     


           

    
    1, 5
1, 13

     

714
5535537140.775
             

1000
0.0848.4
             
77.58.477.585.9
1000


             
0.002
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34

   
0.2   
1
             



2, 1
    2, 2 0.084
0.775
1.93
2, 3  

         



     

    

          


         
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34



          


SPSS V.20

Waldt

WaldHoshmer & Lemshow, 2003, 16
  i  

WZW

 poston, 2004W  Z
    


Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34

X1, N1
10
        
Wald R  A
Ratio N
Wald 





Likelihood ratio 
        
           

poston, 2004

i1
      H0      

 154.882
101
121.666
            


 -2LL 
             
   Y    
   
Y
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34


Chi-Square



154.882
10
0.000
SPSS V.20
Homser Lemsho
H0H1

Hosmer & Lemshow, 2000, 137-149
 H  
g-2g
  g 
nn/gH
g-2
H0
yx
          6.937  
80.0515.51
             
  
        0.05   


Chi-Square


6.937
8
0.543
SPSS V.20

           binary
           
    
pseudo  Mc Fadden 
Gujarati and Porter, 2009, 563
 0.0
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34

11
Greens, 2018, 561Sicosovo, etc; 2019, 86
Mc Fadden, 1974
 H0:
     
       H1:      

0.20
20



  
R-2              OLS
LRM     R-2        

              
  Gujarati & Porter, 2009, 206 


 




178-Goldberger, 1991, 177


0.30    
0.90Kunts, 2001, 107Wooldrige, 2003, 200 & p370
 Pseudo 
           
     
   


Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34


ML
residualerror term


          LPM


LPM      LPM 

Multicolinearity
 VIF   3.615    5     
           VIF

 Autocorrelation  

      D-W    5 
10
 200    dl=1.665      
du=1.874    D-W     1.94  
20du4-du2.126D-W1.874



Gujarati, 2008, 419


Studenmund, 2017, 282


          





Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34


Wald
            
    
  

Wald
Wald
              

           






          






            

             



            

           
    

Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34






OddsOdds ratio 

  









  
     


Journal, Periodical, Thesis and Books:
1. Cirillo, Cinza, (2010), Automobile Ownership model, University of Maryland, USA.
2. Drebee, Hayder Abas . Abdulrazak, Nor Azan & Abd Karim, Mohd Zaini, (2012), The Impact
of Household Characteristics on Automobile Choice in Malaysia:An Application of The
Multinomial Logit Model, Utra University, Malaysia. IJER, Vol.9, No.1, pp17-33.
3. Ekains, John, (2013), the Determinants of Household Car Ownership: Empirical Evidence from
the Irish Household Budget Survey, University of Surrey, UK.
4. Goldberger, Arthur S., (1991), "A Course in Econometrics", Harvard University Press,
Cambridge, Massachusetts. Cited in (Gujaratti, 2009, 123-124)
5. Gujaratti, Damodar Porter, Dawn C, (2008), Basic Econometrics 5th ed., McGraw-Hill
companies, New York, USA.
6. Hosmer, Daivd W & Lemeshow, Stanley (2000), Applied Logistic Regresson, Second Edition,
John Wiley & Sons, Inc, USA.
7. Kunst, Robert M., (2011), "Introductory Econometrics, University of Vienna and Institute for
Advanced Studies", Vienna,robert.kunst@univie.ac.at.
8. Scasny, Milan & Urban, Jan, (2011), Passenger Car Ownership in Czech Republic, International
Days of Statistics & Economics, Prague, September 2011.
9. Studenmund, A. H. (2006), Using Econometrics: A practical Guide, 5thed., Pearson
International Edition, Addison Wesley Longman, Inc.
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34
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10. Train, Kenneth, (1989), Qualitative Choice Analysis, Theory, Econometrics, and an Application
to Automobile Demand, Cambridge, Massachusetts, Landon.
11. Wooldridge, Jeffery M., (2013), "Inroductory Econometrics: A modern Approach", 4th ed.,
South-Western, Cengage Learning, Mason, USA.



 















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








Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34









 












 
 

 









Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34


 
 

 










 
 

 
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





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

 
 

 
Tikrit Journal of Administration and Economics Sciences, (31/12/2021);Vol. 17, No. 56, Part (2): 573-595
Doi: www.doi.org/10.25130/tjaes.17.56.2.34
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