TITLE

Subsidies and welfare maximization tradeoffs in bus transit systems

AUTHOR(S)
Zhou, Ying; Kim, Hong; Schonfeld, Paul; Kim, Eungcheol
PUB. DATE
September 2008
SOURCE
Annals of Regional Science;Sep2008, Vol. 42 Issue 3, p643
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Under a maximum welfare objective, a fixed route bus system and a flexible route bus system are optimized subject to various financial constraints. For each bus system, the decision variables including fare, headway, route spacing, and service zone area are optimally solved to analyze unconstrained, break-even and subsidy cases. Numerical results and sensitivity analysis are presented in the paper. From the numerical evaluation, it is shown that the effects of subsidies on welfare are quite different for a fixed route bus system versus a flexible route bus system. For the fixed route bus system, the optimal welfare curve is very flat over a wide range of subsidies. However, for the flexible route bus system, the break-even constraint causes a large loss in the social welfare. Thus, with the welfare maximization objective, the break-even policy or low transit subsidy policy may be preferable for the fixed route bus system, but not for the flexible route bus system. The results derived from this study can support effective decision-making on bus transit systems in areas that may experience significant shifts in residential density, as well as geographic or physical changes in their street networks.
ACCESSION #
33042245

 

Related Articles

  • The Quest for More Efficient R&D Subsidies. Jaklič, Andreja; Burger, Anže; Rojec, Matija // Eastern European Economics;Jul/Aug2013, Vol. 51 Issue 4, p5 

    We study the dynamic effects of research and development (R&D) subsidies on private R&D spending in Slovenia and examine the changes in corporate R&D spending behavior due to R&D subsidies by applying propensity score matching methodology. Taking the difference-in-differences approach, we...

  • After the Arab Spring--the long, hot Arab Summer? Siddiqi, Moin // Middle East;Aug/Sep2011, Issue 425, p35 

    The article reports on the efforts of the countries of the Middle East and North Africa (MENA) to address the rising social and political upheavals. To prevent the threat of civil unrest, countries expanded their fuel and food subsidies and increased wages and pensions of government workers....

  • Decentralization, externalities, and efficiency. Morduch, Jonathan; Klibanoff, Peter // Review of Economic Studies;Apr95, Vol. 62 Issue 2, p223 

    In the competitive model, externalities lead to inefficiencies, and inefficiencies increase with the size of externalities. However, as argued by Coase, these problems may be mitigated in a decentralized system through voluntary coordination We show how coordination is limited by the combination...

  • Free Enterprise Online.  // Institute of Public Affairs Review;Mar2005, Vol. 57 Issue 1, p42 

    The article presents information on various enterprise sights. www.imdb.com Go to the search field in the top left hand corner, and type in Field of Dreams. Press Enter. Wait. After a few seconds you will be presented with a list of possible matches. www.reason.com/0401/co.mw. if.shtml While...

  • Protecting Jobs in the Age of Globalization: Examining the Relative Salience of Social Welfare and Industrial Subsidies in OECD Countries. CAO, XUN; PRAKASH, ASEEM; WARD, MICHAEL D. // International Studies Quarterly;Jun2007, Vol. 51 Issue 2, p301 

    The relationship between economic openness and welfare policies has become increasingly important to policy makers. While scholars have tended to examine conditions under which budgets for social welfare programs ebb and flow along with countries' exposure to trade, they have overlooked how...

  • Whose Free Ride? : Transit Subsidies. Higgins, John K. // New Republic;5/6/72, Vol. 166 Issue 19, p13 

    Focuses on the need of public subsidies for operating transit systems in the United States. Emphasis on setting up of performance standards for the recipients of subsidies; Guidelines for determining those services to be aided are essential; Submission of plans by applicants for improving...

  • A Trifle Outmoded? Whittemore, Reed // New Republic;7/22/72, Vol. 167 Issue 4, p26 

    Reviews the book "The Lies of Art: Max Beerbohm's Parody and Caricature," by John Felstiner.

  • CAPITAL SUBSIDIES AND EMPLOYMENT IN AN OPEN ECONOMY. NEARY, J. PETER // Oxford Economic Papers;Sep1978, Vol. 30 Issue 3, p334 

    No abstract available.

  • Clothesline. Beinart, Peter // New Republic;06/04/2001, Vol. 224 Issue 23, p8 

    Presents the opinion that U.S. President George W. Bush should help struggling African democracies by assisting them in moving from primary to secondary commodities. Analysis how the elimination of textile subsidies against Africa would aid countries' economies; Analysis how Bush's Africa policy...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics