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Subsidies and US Urban Transit Ridership

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  • Peran van Reeven
  • Vladimir Karamychev

Abstract

In recent years, operating subsidies in the USA increased considerably in response to public concerns over traffic congestion and air quality. In a panel of more than 600 transit firms over the period from 1991 to 2012, we find no significant relationship between subsidy and ridership. We show that with a larger subsidy, a transit system operates a larger network but less intensively. At the same time, this subsidy influences service supply in such a way that the quality, as perceived by the traveller, suffers. This is reflected by lower costs of production. © 2016 LSE and the University of Bath

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  • Peran van Reeven & Vladimir Karamychev, 2016. "Subsidies and US Urban Transit Ridership," Journal of Transport Economics and Policy, University of Bath, vol. 50(1), pages 1-20, January.
    • Handle: RePEc:tpe:jtecpo:v:50:y:2016:i:1:p:1-20
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    Cited by:

    1. Avenali, Alessandro & Catalano, Giuseppe & D'Alfonso, Tiziana & Matteucci, Giorgio, 2020. "The allocation of national public resources in the Italian local public bus transport sector," Research in Transportation Economics, Elsevier, vol. 81(C).

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