THE REDISTRIBUTIVE IMPACT OF TRANSIT SERVICES FINANCING

Concern over the increasing financial problems of mass transit and the search for new sources of revenues generated this study. This study focuses on the question of who are the financial providers and the primary beneficiaries of public transit. The redistributive impacts of public transit are important not only because they concern the income groups that pay vis-a-vis the income groups that benefit, but also because the distribution of costs and benefits are often a source of political conflict. The purpose of this report is to compare the socioeconomic profiles of these groups considering a transit investment, service change or financial mechanism. This report presents an up-to-date literature survey of the sources of transit financing (both single and multiple sources). It then examines "who pays" from each financing source. Using data from the Consumer Expenditure Survey and the public finance literature, this burden (incidence) is explored and analyzed. The primary beneficiaries of transit are identified and classified, and the relationship between different fare policies, subsidies, and their impact on families at different income levels is examined. The report suggests a framework for determining the redistributive impact of a transit investment, service change or financing mechanism. The report states that choosing a financing source or replacing one with another will affect the profile of who pays. Most sources place a relatively greater burden on the poor (particularly transit fares). By comparing the profiles of who pays with who benefits, redistribution can be inferred, and the knowledge used to minimise adverse impacts. This report contains a list of references and conclusions. (UMTA)

• Corporate Authors:

  Illinois Institute of Technology

  Harold Leonard Stuart School of Management & Finance
  Chicago, IL  United States  60616

  Urban Mass Transportation Administration

  400 7th Street, SW
  Washington, DC  United States  20590
• Authors:
  • Rock, S M
• Publication Date: 1981-9

Media Info

• Pagination: 168 p.

Subject/Index Terms

• TRT Terms: Income; Physical distribution; Public transit; Revenues; Socioeconomic factors
• Uncontrolled Terms: Sources
• Old TRIS Terms: User characteristics
• Subject Areas: Economics; Finance; Freight Transportation; Highways; Public Transportation; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00345366
• Record Type: Publication
• Report/Paper Numbers: UMTA-IL-11-0029-81-1Final Rpt.
• Files: TRIS, USDOT
• Created Date: Jan 29 1982 12:00AM