The Economics of Taxis

http://www.futureofcapitalism.com/2010/08/the-economics-of-taxis

Cornell University professors C. Kirabo Jackson and Henry S. Schneider have a new working paper out from the National Bureau of Economic Research looking at the economics of the New York City taxi industry. From the abstract: "We study the New York City taxi industry where taxis are often leased and lessee-drivers have worse driving outcomes than owner-drivers as a result of a moral hazard associated with incomplete leasing contracts. Using instrumental variables and fixed-effects analyses, we find that: drivers leasing from members of their country-of-birth community exhibit significantly reduced effects of moral hazard."

by Editor  |  Aug 23, 2010 at 8:59 am Related Topics:  Education, Immigration receive the latest by email: subscribe to the free futureofcapitalism.com mailing list