Rising Deficits and the Uses of transit Subsidies in the United States

Rising Deficits and the Uses of transit Subsidies in the United States

The author finds that most of the increase in subsidies to transit in recent years has been absorbed by increased costs, expanded services, and reduction in real fares, rather than compensating for decreased demand. It is suggested that the increased availability of subsidies may itself be a cause of increased costs and deficits.

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