SCALE ECONOMIES AMONG UNITED STATES BUS TRANSIT SYSTEMS. FINAL REPORT

To provide insight into the question of economies of scale among United States bus transit systems, a literature review (which proved inconclusive) and data analysis were conducted. The data covered 73 medium and large bus transit systems for fiscal years ending between January 1 and December 31, 1983. The objective of the data analysis was to determine the extent to which selected unit operating expense variables (e.g., adjusted operating expense per vehicle hour) are a function of various measures of scale (e.g., total buses in the revenue fleet) and other nonfinancial system definition variables (e.g., average operating speed). Regression analysis revealed diseconomies of scale. Roughly ten percent of the variation in adjusted operating expense per vehicle hour is associated with variation in buses operated during the base period. These findings challenge the widely-held belief that economies of scale are present among United States bus transit systems. There is a need, therefore, for policymakers to consider alternate institutional arrangements which would encourage and reward cost-efficiency without compromising quality and safety. Changes in organizational design are also an option.

• Corporate Authors:

  New York Institute of Technology

  Office of Transportation Programs
  Old Westbury, NY  United States  11568

  Urban Mass Transportation Administration

  University Research and Training Program, 400 7th Street, SW
  Washington, DC  United States  20590
• Authors:
  • Keough, M
• Publication Date: 1987-12

Media Info

• Features: References;
• Pagination: 39 p.

Subject/Index Terms

• TRT Terms: Bus transportation; Economics; Economies of scale; Regression analysis; Transportation
• Identifier Terms: Urban Mass Transportation Act
• Geographic Terms: United States
• Old TRIS Terms: Umta section 11
• Subject Areas: Economics; Planning and Forecasting; Transportation (General);

Filing Info

• Accession Number: 00465768
• Record Type: Publication
• Source Agency: Urban Mass Transportation Administration
• Report/Paper Numbers: UMTA-NY-11-0036-88-1
• Contract Numbers: UMTA-NY-11-0036
• Files: TRIS, USDOT
• Created Date: Feb 29 1988 12:00AM