>Should transit subsidies be increased?

>I haven’t read it yet, but this paper (PDF) argues that increasing transit subsidies is welfare-increasing up to fifty percent.

I read the paper, it basically argues that if transit systems respond to increased ridership by a combination of increased vehicle loading and decreased headways (I think it was 33% and 67%, respectively), then decreasing fares caused a net gain in overall welfare for society, mostly due to decreased congestion costs for automobiles. There was also a significant effect due to reduced passenger waiting times from the increased frequency.

The paper warned, however, that inefficient transit management and labor organization may lead to the welfare effects being captured by transit employees or burnt away in waste.


About perkinsms

I'm an engineer and father interested in transit, parking and economics.
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3 Responses to >Should transit subsidies be increased?

  1. John says:

    >Hey, warn the reader when it’s a PDF link!

  2. Michael says:

    >Um, I said it was a paper, which are usually PDFs, and when you point to the link, you can see the destination in your browser.I’ll try to remember in the future.

  3. Michael says:

    >BTW, how did you find Infosnack HQ?

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