The Efficiency of Public transport Objectives and Subsidy Formulas

The Efficiency of Public transport Objectives and Subsidy Formulas

Maximisation of ridership appears to be inefficient, but this depends on the demand and cost functions. It is also necessary to know these to judge the efficiency of any subsidy formula.

Share Content

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn

Related Articles

Alternative Tendering Systems and Deregulation in Britain

When UK bus services were deregulated in 1985 a system of competitive tendering was introduced for the provision of socially necessary services. Payment to the operator can be either the net difference between cost and revenue or the gross (total) cost of the service. While the former is attractive, a comparison of both methods indicates the overall cost to the contracting authority is generally lower under the gross cost method, due to the reduced risk perceived by the operator.

View Journal »

Economic Efficiency of Railways and Implications for Public Policy: A Comparative Study of the OECD Countries’ Railways

The productive efficiency of the railway systems in 19 OECD countries is analysed. The empirical results show that: (i) railway systems with high dependence on public subsidies are significantly less efficient than similar railways with less dependence on subsidies; (ii) railways with a high degree of managerial autonomy from regulatory authorities tend to achieve higher efficiency.

View Journal »