Government Failure in Urban Transportation
AbstractThis paper assesses governmental performance in its investment, provision, and regulation of urban transportation. Attention is given to public bus and rail transit and road transportation. Evidence based on urban transport in U.S. cities reveals substantial allocative and technical inefficiencies that have led to large public transit deficits and severe highway congestion. I argue that it is futile to expect public officials to remedy the situation by pursuing more efficient policies, such as congestion pricing and weighing costs and benefits when deciding transit service. The problem is that urban transportation policy is largely shaped by entrenched political forces that inhibit constructive change. The only realistic way to improve the system is to shield it from those influences and expose it to market forces by privatizing it. This position is supported by empirical evidence based on simulations for the United States and the United Kingdom's early experience with privatization.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Regulation2point0 in its series Working paper with number 504.
Date of creation: Nov 2000
Date of revision:
Contact details of provider:
Web page: http://regulation2point0.org/
Other versions of this item:
- R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Karlaftis, Matthew & McCarthy, Patrick, 1999. "The Effect of Privatization on Public Transit Costs," Journal of Regulatory Economics, Springer, vol. 16(1), pages 27-43, July.
- Pashigian, B Peter, 1976. "Consequences and Causes of Public Ownership of Urban Transit Facilities," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1239-59, December.
- Clifford Winston, 1998. "U.S. Industry Adjustment to Economic Deregulation," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 89-110, Summer.
- Walters, A. A., 1982. "Externalities in urban buses," Journal of Urban Economics, Elsevier, vol. 11(1), pages 60-72, January.
- Peltzman, Sam, 1992. "Voters as Fiscal Conservatives," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 327-61, May.
- David M. Newbery & Georgina Santos, 1999. "Road taxes, road user charges and earmarking," Fiscal Studies, Institute for Fiscal Studies, vol. 20(2), pages 103-132, June.
- Calfee, John & Winston, Clifford, 1998. "The value of automobile travel time: implications for congestion policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 83-102, July.
- Lave, Charles, 1991. "Measuring the Decline in Transit Productivity in the U.S," University of California Transportation Center, Working Papers qt63g5j4z4, University of California Transportation Center.
- Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2006.
"Privatizing Highways in the United States,"
Review of Industrial Organization,
Springer, vol. 29(1), pages 27-53, September.
- Feng Xie & David Levinson, 2009.
"Governance choice on a serial network,"
200904, University of Minnesota: Nexus Research Group.
- Clifford Winston & Jia Yan, 2008. "US Highway Privatization and Heterogeneous Preferences," Working Papers 2008-20, School of Economic Sciences, Washington State University.
- Yoshitaka Fukui & Kyoji Oda, 2012. "Discussion Paper: Who Should Take Responsibility for Unexpected Interest Changes? Lesson from the Privatization of Japanese Railroad System," Networks and Spatial Economics, Springer, vol. 12(2), pages 263-278, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Archive Maintainer).
If references are entirely missing, you can add them using this form.