ALTERNATE FORMULAS FOR A FEDERAL OPERATING SUBSIDY PROGRAM FOR TRANSIT

The paper discusses the rationale for transit subsidies, and explores the implications of four simple transit-subsidy formulas. It reviews the several arguments that have been advanced to justify the subsidization of mass transit services; describes some of the many possible subsidy formulas for allocating funds under an operating subsidy program; and directs attention to four criteria that should be used in selecting a particular subsidy formula; efficacy, incentives for economic efficiency, distribution costs, and equity. Four simple transit-subsidy formulas are analyzed: subsidies proportional to urban populations, to transit revenue-passengers, to vehicle-miles of service, or to potential transit-riders.

• Supplemental Notes:
  • See also report dated Jan 73, PB-219 077.
• Corporate Authors:

  Institute for Defense Analyses

  Program Analysis Division
  Arlington, VA  United States 
• Authors:
  • Oi, W Y
• Publication Date: 1973-11

Media Info

• Pagination: 140 p.

Subject/Index Terms

• TRT Terms: Buses; Commuter service; Cost allocation; Finance; Governments; Grant aid; Passenger service; Planning; Policy; Public transit; Rapid transit; Subsidies; Urban transportation
• Identifier Terms: Institute for Defense Analyses
• Uncontrolled Terms: Criteria; Financial management
• Geographic Terms: Illinois; Massachusetts; New York (State)
• Old TRIS Terms: Allocations; Government planning; Government policies; Rapid transit railways
• Subject Areas: Finance; Passenger Transportation; Planning and Forecasting; Policy; Public Transportation; Railroads;

Filing Info

• Accession Number: 00051572
• Record Type: Publication
• Source Agency: National Technical Information Service
• Report/Paper Numbers: P-943 Final Rpt
• Files: NTIS, TRIS
• Created Date: Mar 25 1981 12:00AM