Incentive Effects of Expanding Federal Mass Transit Formula Grants
Public subsidies to industries firms incentives to alter their behavior. When calculating the effects of such programs, previous assessments of transit subsidies have not included the effects of these incentives on the firms' output. This article reports the responses of mass transit firms to the federal transit subsidy program and changes the Transportation Equity Act for the 21st Century (TEA 21) made to that program, as predicted by a structural model of output choice. TEA 21 increases bus service in medium-sized cities by 6-8 percent, butincreases service in large cities by only 1-2 percent. The formula's incentive tier is weak, and the size of the subsidy depends little on whether that output results in increased ridership. The formula could be redesigned to provide stronger incentives to lower cost and increase ridership, thus encouraging a more efficient response from transit firms. © 2001 by the Association for Public Policy Analysis and Management.
Volume (Year): 20 (2001)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/34787/home|
References listed on IDEAS
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.:
- Boarnet, Marlon G. & Bogart, William T., 1996. "Enterprise Zones and Employment: Evidence from New Jersey," Journal of Urban Economics, Elsevier, vol. 40(2), pages 198-215, September.
- Kremer, Michael R., 1998. "Patent Buyouts: A Mechanism for Encouraging Innovation," Scholarly Articles 3693705, Harvard University Department of Economics.
- Michael Kremer, 1998. "Patent Buyouts: A Mechanism for Encouraging Innovation," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1137-1167.
- Palmer, Karen & Sigman, Hilary & Walls, Margaret, 1997.
"The Cost of Reducing Municipal Solid Waste,"
Journal of Environmental Economics and Management,
Elsevier, vol. 33(2), pages 128-150, June.
- Palmer, Karen & Walls, Margaret & Sigman, Hilary, 1996. "The Cost of Reducing Municipal Solid Waste," Discussion Papers dp-96-35, Resources For the Future.
- Pinelopi Koujianou Goldberg & Michael M. Knetter, 1997. "Causes and Consequences of the Export Enhancement Program for Wheat," NBER Chapters,in: The Effects of U.S. Trade Protection and Promotion Policies, pages 273-296 National Bureau of Economic Research, Inc.
- Pinelopi K. Goldberg & Michael M. Knetter, 1995. "Causes and Consequences of the Export Enhancement Program for Wheat," NBER Working Papers 5359, National Bureau of Economic Research, Inc.
- Fredriksson, Per G., 1998. "Environmental policy choice: Pollution abatement subsidies," Resource and Energy Economics, Elsevier, vol. 20(1), pages 51-63, March.
- Papke, Leslie E., 1994. "Tax policy and urban development : Evidence from the Indiana enterprise zone program," Journal of Public Economics, Elsevier, vol. 54(1), pages 37-49, May.
- Leslie E. Papke, 1991. "Tax Policy and Urban Development: Evidence From The Indiana Enterprise Zone Program," NBER Working Papers 3945, National Bureau of Economic Research, Inc.
- Janusz Mrozek, 2000. "Revenue Neutral Deposit/Refund Systems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(2), pages 183-193, October.
- Viton, Philip A, 1981. "A Translog Cost Function for Urban Bus Transit," Journal of Industrial Economics, Wiley Blackwell, vol. 29(3), pages 287-304, March.
- Poonyth, Daneswar & Westhoff, Patrick & Womack, Abner & Adams, Gary, 2000. "Impacts of WTO restrictions on subsidized EU sugar exports," Agricultural Economics, Blackwell, vol. 22(3), pages 233-245, April.
- Ryoichi Sakano & Kofi Obeng & G. Azam, 1997. "Subsidies And Inefficiency: Stochastic Frontier Approach," Contemporary Economic Policy, Western Economic Association International, vol. 15(3), pages 113-127, 07.
- Bruno Van Pottelsberghe & Dominique Guellec, 1999. "Does government support stimulates private R&D," ULB Institutional Repository 2013/6231, ULB -- Universite Libre de Bruxelles.
- Poonyth, Daneswar & Westhoff, Patrick & Womack, Abner & Adams, Gary M., 2000. "Impacts of WTO restrictions on subsidized EU sugar exports," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 22(3), April.
- Miles K. Light, 1999. "Coal Subsidies and Global Carbon Emissions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 117-148. Full references (including those not matched with items on IDEAS)