ECONOMIES OF SCALE IN BUS TRANSIT: A REVIEW OF CONCEPTS AND EVIDENCE

The issue of returns of scale in bus transit continues to be a subject of debate among transportation analysts. From a public policy perspective, returns to scale are relevant to many policy areas such as transit service pricing, cost allocation, productivity and organization of the industry. Empirical studies conducted during the past decade have generated conflicting results. Constant, decreasing and increasing returns to scale have all been reported. This paper identifies the sources of these conflicting results: confusion regarding the concept of scale economies, variable definition, assumptions regarding the shape of the cost function, and certain characteristics of the data base. The paper also discusses the theoretical concept of scale economies, and an interpretation of the concept for bus transit is presented. It is concluded that recent studies which have utilized generalized cost functions more accurately represent the economic structure of bus transit, and provide a stronger basis for transit policy analysis. (Author/TRRL)

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00494488
• Corporate Authors:

  Elsevier

  Radarweg 29
  Amsterdam,   Netherlands  1043 NX
• Authors:
  • Berechman, J
  • Guiliano, G
• Publication Date: 1985-5

Media Info

• Features: References; Tables;
• Pagination: p. 313-332
• Serial:
  • Transportation (Netherlands)
  • Volume: 12
  • Issue Number: 4
  • Publisher: Martinus Nijhoff Publishers
  • ISSN: 0049-4488

Subject/Index Terms

• TRT Terms: Analysis; Benefit cost analysis; Bus transit; Buses; Costs; Economic factors; Economics; Economies of scale; Institutional issues; Performance; Policy; Policy making; Productivity; Public transit; Tariffs; Transit operating agencies; Transportation
• Uncontrolled Terms: Cost analysis; Performance indicators
• Old TRIS Terms: Bus services
• ITRD Terms: 224: Cost; 226: Cost benefit analysis; 263: Economics of transport; 173: Policy; 744: Public transport; 241: Tariff
• Subject Areas: Administration and Management; Economics; Planning and Forecasting; Policy; Society; Transportation (General); I10: Economics and Administration; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00451233
• Record Type: Publication
• Source Agency: Transport Research Laboratory
• Files: ITRD, TRIS
• Created Date: Nov 30 1985 12:00AM