Economic Forces

Text A few years ago public transportation began to shift radically, usually in the country unless they want to take the bus to travel a long distance or short, take a taxi, and that was the rule. But suddenly began to come called taxis, just remember seeing those vehicles seen in movies of oriental fighting. However, little by little its use spread. Get more background information with materials from Ohio Senator. At first the vehicles were seen as an extravagance, but then it became a necessity to the point that in all cities of the country has expanded its use. In simple terms: it is cheap compared to a taxi service in terms of only short distances. And this is its main advantage over taxis. Besides that a taxi is more expensive to get in front of a motorcycle taxi therefore the cost of borrowing is lower, adding further that the weight of a taxi will consume more fuel ago, being the least significant moto-taxi then spends less fuel.

However, the taxis have been linked with the informality and the so-called culture chichi, besides being unsafe and provide transport to the city look bad. What if issued a rule prohibiting the movement of taxis? As economists or those who pretend to be, we use something called the cost-benefit analysis to analyze these issues in general. It will address the Costs: “As a source of employment for thousands of people, the abolition of means of transport that generates unemployment and a negative impact on economic activity because of reduced zonal spending patterns of these people. “To be interrelated with other markets such as parts and servicing, the suppression of that activity also creates a negative impact on the local economy. “The welfare impact should be measured, since in this case it would be a reduction in the benefit of consumers who gave him a motorcycle taxi transport assessment, provided that no more would have to find other means of transport that meet the Characteristics of the closest previous would be the taxi, but has a different price. In case of very poor people who can not afford a taxi would be a total loss of profit.

-Increase in professional activities and which is used as a working tool for a segment of the population of low education. Benefits:-A reduction in the mortality rate in the transport and that an accident the chances of survival in these vehicles is minimal, which would positively affect the overall transport. -An improvement in the appearance of the city, which would be evaluated in the assessment to give citizens the image of the city. -Increased revenue of substitute services (taxis). So a priori, the benefits outweigh the costs which implicitly includes the fact that the motorcycle taxi service ceased to be a superfluous service to become a necessary component of both suppliers and demands. That brings to the utility function of the individual who use and income of one who offers the service for increasing their participation in the process economic. So that a law to eradicate this form of transport that is counterproductive.

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