Structures productives de l'industrie du transport urbain et effets des schémas réglementaires

Increasing attention is being paid to the economic underpinnings of public transit services. Issues pertaining to the transport operator's production and cost structures, as well as the effects of regulation and subsidy policies on the operator's performance are attracting growing interest. The objective of this paper is to estimate a Translog cost function using observations on 60 different urban areas and contractual relationships between local authorities and public or private operators between 1985 and 1993. The results suggest that local authorities usually set prices above marginal costs, but below average costs, in order to respond to universal service obligations. Second, it is shown that operators' costs are lower when they are regulated under incentive contracts (as opposed to cost plus contracts), i.e., under regimes that give operators perfect incentives to provide more effort and reduce operating costs.