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Trans. Planning Journal
| Title | Productivity Changes of Subsidized Routes for Taipei City Bus Transit in 1996-1999 |
|---|---|
| Author | Dun-Ji Chen & Eric M. Y. Lee |
| Summary | The program of Mass Transit Development and Promotion is our government’s first subsidy ever for the operation deficits of the mass transit operators, including the private ones. This study explores the economic effects of subsidy under the existing subsidy system for the bus transit operator of Taipei city. Firstly, the Translog cost functions of the subsidized route are established respectively for the Public Bus Administration (PBA) and Joint Operation Bus Transit (JOBT). Then, the equation of total factor productivity (TFP), which could reflect the subsidy effect, is derived in the study. The methods described are imposed to analyze the economic characteristics and productivity changes of the subsidized routes of transit buses. The major findings of the empirical study are as follows. (1) The operation cost of PBA had been decreased in the first three periods and was increased gradually in the last three periods, Whereas the operation cost of JOBT was decreased in the last period, and changed significantly than these of the PBA. (2) The total factor productivity of PBA was decreased in the analyzed period, due to the effect of technical changes. The productivity of the subsidized routes of the PBA were worsened, and the productivity of large-sized vehicles was decreased more than these of the small- sized vehicles. (3) The more the unit of the JOBT was subsidized, the worse the productivity became, and the productivity of the PBA had been decreased more than these of the private units. Furthermore, this paper suggests that the optimum output (i.e. frequency) of operated route could be obtained based on the concept of minimum efficient scale (MES), and could also be regarded as the ceiling of subsidy standard by the governmental agency. This will enhance the operator’s improvement of their operation performance. |
| Vol. | 32 |
| No. | 1 |
| Page | 1 |
| Year | 2003 |
| Month | 3 |
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