Benefit-Cost Rules for Urban transit Subsidies. An Integration of Allocational, Distributional and Public Finance Issues

Benefit-Cost Rules for Urban transit Subsidies. An Integration of Allocational, Distributional and Public Finance Issues

In determining the level of subsidy, and its use in reducing fares or increasing frequencies, weight should be given to the comparative benefits accruing to different income groups. A local authority will be influenced in its decision by the proportion of the cost that is borne by central government.

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