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Replication data for: Should Urban Transit Subsidies Be Reduced?

Resource Type
  • Parry, Ian W. H.
  • Small, Kenneth A.
Publication Date
  • Abstract

    This paper derives empirically tractable formulas for the welfare effects of fare adjustments in passenger peak and off-peak rail and bus transit, and for optimal pricing of those services. The formulas account for congestion, pollution, accident externalities, scale economies, and agency adjustment of transit service offerings. We apply them using parameter values for Washington (DC), Los Angeles, and London. The results support the efficiency of the large current fare subsidies; even starting with fares at 50 percent of operating costs, incremental fare reductions are welfare improving in almost all cases. These findings are robust to alternative assumptions and parameters. (JEL L92, R41, R42, R48)
  • Is supplement to
    DOI: 10.1257/aer.99.3.700 (Text)
  • Parry, Ian W. H, and Kenneth A Small. “Should Urban Transit Subsidies Be Reduced?” American Economic Review 99, no. 3 (May 2009): 700–724.
    • ID: 10.1257/aer.99.3.700 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Parry, Ian W. H.; Small, Kenneth A. (2009): Replication data for: Should Urban Transit Subsidies Be Reduced?. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.