Abstract

This paper develops a conceptual model to classify bus transit policy variables based on their effects on the performance levels of the various inputs and total performance measured by the presence or absence of (dis)economies of scale. The four groups of variables identified in the study include those with Strictly positive outcome—these include speed, and the ratio of employer to employee paid benefits. They improve the productivity levels of the inputs which they affect as well as total performance. Mixed effect with positive outcome—local and federal section 3 subsidy availability are the policy variables in this group. Strictly negative outcome—the policy variables in this group are route miles, the ratio of executives, professionals and supervisors, capacity utilization, and the peak base ratio. Mixed effect with negative outcome—those variables in this group are fleet age, state subsidy availability and the number of modes operated. The policy implications of these groups are examined in the paper....

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