Determinants of automobile demand in the Maltese islands

Abstract

Estimating automobile demand is of paramount importance for policy makers, as such demand has significant effects on our economy and the environment we live in. In light of this, a demand function for passenger cars in Malta is estimated in this dissertation, using an ARDL-Cointegration methodology. Thereby, throughout this study, the elasticities pertaining to the major determinants of automobile demand as highlighted by the vast literature were estimated. The findings indicate that two determinants in particular are striking; active population and young adults aged between 18 and 25. In return, the results obtained confer valuable insights for policy making in the transport sector.