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.


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    Title :

    The redistributive effects of reduced transit fares for the elderly


    Contributors:

    Published in:

    Publication date :

    1979-03-17


    Size :

    5 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English






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