THE EFFECT OF GOVERNMENT OWNERSHIP AND SUBSIDY ON PERFORMANCE : EVIDENCE FROM THE BUS TRANSIT INDUSTRY
Several theories have been advanced to predict difference in behaviour of government-owned vs private firms, such as theories of bureaucratic growth, inefficiency, and concentration on vote-maximizing service with neglect of other important characteristics of service. This study tests the above theories in a declining industry, the US urban bus transit industry of 1960-75. The analysis bridges the period before and during the major federal capital grant program which was initiated under the Urban Mass Transportation Act of 1964. The empirical results indicate that subsidy at the federal level is associated with higher costs and lower real price and a redistribution of service toward an expanded area, served less frequently. Local and state subsidy is associated with smaller increases in costs and smaller decreases in frequency of service and ridership. The form of public ownership does affect performance, but the unknown size of inter-agency cross-subsidization and tax benefits makes comparison tenuous without case-level investigation. The conclusion is reached that although the bureaucratic growth, inefficiency and vote-maximization theories are supported, inefficiency and bureaucratic growth are associated with passive sponsorship and large size of firm, rather than with public ownership, per se. (A)
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/09658564
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Corporate Authors:
Pergamon Press, Incorporated
Headington Hill Hall
Oxford OX30BW, -
Authors:
- Anderson, S C
- Publication Date: 1983-5
Media Info
- Features: References; Tables;
- Pagination: p. 191-200
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Serial:
- Transportation Research Part A: Policy and Practice
- Volume: 17A
- Issue Number: 3
- Publisher: Elsevier
- ISSN: 0965-8564
- Serial URL: http://www.sciencedirect.com/science/journal/09658564
Subject/Index Terms
- TRT Terms: Bus transit; Buses; Costs; Economic efficiency; Equity; Federal government; Financing; Institutional issues; Legislation; Level of service; Nationalization; Ownership; Performance; Private enterprise; Public transit; Subsidies; Urban areas
- Uncontrolled Terms: Efficiency; Performance indicators; Use
- Geographic Terms: United States
- Old TRIS Terms: Bus services
- ITRD Terms: 1272: Bus; 224: Cost; 5911: Efficiency; 244: Financing; 183: Government (national); 1556: Legislation; 653: Level of service; 744: Public transport; 313: Urban area; 8122: USA; 9084: Use
- Subject Areas: Administration and Management; Economics; Finance; Highways; Law; Planning and Forecasting; Public Transportation; Society; I10: Economics and Administration; I72: Traffic and Transport Planning;
Filing Info
- Accession Number: 00378963
- Record Type: Publication
- Source Agency: Transport Research Laboratory
- Report/Paper Numbers: HS-035 352
- Files: ITRD, TRIS
- Created Date: Oct 30 1983 12:00AM