1996•World Transport Research. Proceedings of the 7th World Conference on Transport ResearchWorld Conference on Transport Research SocietyRequires access

Efficient Public Transport Subsidies. Volume 3: Transport Policy

O I Larsen

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Abstract

A model of the public transit system in Oslo is used to investigate the implication of fares and the level of service assuming an objective that is maximization of social surplus. Consequences of different constraints are tested and social “second best” solutions are investigated. Results are given for fares, level of service, demand, costs revenue and the shadow price of financial constraints.

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Key concepts: Subsidy, Public transport, Revenue, Maximization, Economics, Shadow (psychology), Economic surplus, Service (business)