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- Title
The Redistributive Impact of the Atlanta Mass Transit System: A Comment.
- Authors
Talley, Wayne K.; French, Gary L.
- Abstract
The purpose of this paper is to demonstrate the DEM made several methodological errors in measuring benefits and costs of MARTA and hence their conclusions are questionable. Furthermore, the DEM benefit-cost model will be presented in a graphical framework. Because of the many factors that enter into the determination of benefits and costs or urban transit, the possibility of not considering or being inconsistent in considering a relevant factor becomes highly probable. The graphical model presented in this paper was found to be extremely useful in understanding the DEM benefit-cost model and in discovering its errors. A similar model may also be found useful by future researchers in avoiding methodological errors in the measurement of benefits and costs of urban transit. <BR> In conclusion, we have demonstrated that DEM overstated net cost savings or understated costs of MARTA. This conclusion was demonstrated by means of a graphical model which may be found useful in future transportation benefit-cost studies for avoiding methodological errors and inconsistencies. In addition, we questioned the use of cost savings as a measure of transportation benefits. In using cost savings, the loss in benefits associated with the cost savings is usually ignored. Also, it would only be by coincidence even in theory that cost savings would equal the true benefits of a transportation service as measured by the area under a demand curve. Finally, we have demonstrated that an estimate of such an area can be obtained without formally having to empirically estimate the parameters of a demand function.
- Subjects
UNITED States; TRANSPORTATION; INSURANCE; ATLANTA (Ga.). Metropolitan Atlanta Rapid Transit Authority
- Publication
Southern Economic Journal, 1981, Vol 47, Issue 3, p831
- ISSN
0038-4038
- Publication type
Article
- DOI
10.2307/1057379