FIRM SIZE AND OPERATING COSTS IN URBAN BUS TRANSPORTATION

This analysis specifies a neoclassical cost model of urban bus transportation making short-run cost a function of output, inputs, and the stock of buses. The model is used to estimate a long-run cost relationship of transport operations that are largely financed by public funds for a cross-section of urbanized areas in the United States. Use of this model indicates that there are significant economies in providing additional vehicle miles for the urbanized areas studied. The average annual mileage per bus in the sample is 32,000 miles. Although the model used in this paper is restrictive in providing essential information on the structure of technology of urban bus transportation, it is adequate for our problem, given the nature of the available data. It is time that bus cost-function studies leave the phase of estimation without theory. Future research should make use of the implications of duality theory. Future research should make use of the implications of duality theory in the estimation off urban bus--cost relationships. However, this approach requires an ideal data base with detailed expenditure information on each factor input. (Author)

Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/00221821
Corporate Authors:
Blackwell Publishers

108 Cowley Road
Oxford, United Kingdom OX4 1JF
Authors:
- Williams, M
Publication Date: 1979-12

Media Info

Features: References;
Pagination: p. 209-218
Serial:
- Journal of Industrial Economics
- Volume: 28
- Issue Number: 2
- Publisher: Blackwell Publishers
- ISSN: 0022-1821

Subject/Index Terms

TRT Terms: Analysis; Bus drivers; Costs; Mathematical models; Operating costs; Size; Urban transportation; Vehicle miles of travel
Uncontrolled Terms: Cost analysis
Subject Areas: Finance; Public Transportation; I10: Economics and Administration;

Filing Info

Accession Number: 00329642
Record Type: Publication
Files: TRIS
Created Date: Mar 12 1981 12:00AM