User Economies of Scale Bus Subsidy in Adelaide
AbstractThe current public transport policy focus in Adelaide is on the introduction of competitive tendering to improve productive efficiency, improve financial performance and reduce fiscal stress. Beyong this initiative, the question of public transport subsidy is also an issue of critical policy importance requiring attention (Tisato, 1996). In particular, what is the appropriate level of subsidy in Adelaide which can be justified on economic efficiency grounds? This paper contributes to the resolution of this questionby estimating optimal subsidy in Adelaide, South Australia based on user economies of scale (UES) argument for subsidy. The focus is limited to buses, the dominant mode of public transport in Adelaide (and most other Australian cities).
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Bibliographic InfoPaper provided by South Australian Centre for Economic Studies- in its series Papers with number 96.6.
Length: 60 pages
Date of creation: 1996
Date of revision:
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Postal: Australia. South Australian Centre for Economic Studies. P.O. Box 125, Rundle Mall. South Australia 5000
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