Abstract Redistributive effects concern which socioeconomic groups pay for a particular program and which socioeconomic groups benefit from it. Considering the off-peak reduced farefor senior citizens required by UMTA Section 5 funding, an analysis of the resulting financial implication is the first step in examining any redistribution. Knowledge of the number of rides switched from peak to off-peak times, the number of new off-peak rides generated and any cost changes are necessary. It appears that such a policy will likely lower net revenue. If the loss is not reimbursed, a redistribution from non-elderly and peak riders to the elderly users will result; if reimbursement is available, a different result will be obtained. A survey of the literature fails to establish whether reducing fares is preferable to directly transferred income as a means of redistribution. It is concluded that off-peak reduced fare is more efficient than reduced fare at all hours. Finally, the redistribution due to the reduced fare funding mechanism used in Illinois appears to favor the poor.
The redistributive effects of reduced transit fares for the elderly
Transportation Research Part A: General ; 13 , 5 ; 361-365
1979-03-17
5 pages
Article (Journal)
Electronic Resource
English
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