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This study analyzes economies of scale and density as a rationale for subsidizing transit agencies in small urban areas. A long-run cost model is estimated using data from 2006 to 2009 for 168 transit agencies that directly operated fixed-route bus service in small urban areas. Using vehicle revenue...
Rising fuel prices have led to significant increases in costs for public transit agencies. A possible benefit from higher gas prices, though, is an increase in public transit ridership. This study estimates the effects of gas prices on bus ridership by employing a variety of models. Since the price of...
