OPERATING SUBSIDIES AND PERFORMANCE IN PUBLIC TRANSIT: AN EMPIRICAL STUDY

摘要

Based upon several studies analyzing the effects of public transit subsidies on a system's performance, there is a consensus that public transit subsidies have increased a system's effectiveness but compromized its efficiency and overall performance. In addition to providing an extensive review of recent work on this topic, the present analysis extends prior empirical research in two significant directions. First, this study controls for cross-section heterogeneity and autocorrelation that may otherwise seriously bias the resulting estimates and invalidate statistical tests.