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


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.