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Between 1990 and 2000, U.S. transit agencies added service and increased ridership, but the ridership increase failed to keep pace with the service increase. The result was a decline in service effectiveness (or productivity). This marks the continuation of a long-running and often-studied trend. The literature attributes this phenomenon, at least in part, to transit agency decisions to add service in the suburbs rather than focus on serving the traditional CBD market. Many scholars argue that suburban service is wasteful because it attracts few riders and requires large per-rider subsidies. This research tests whether a non-traditional, suburb-focused service orientation, calLED multidestination service, increases or decreases service productivity. Contrary to what the literature suggests, we find that MSAs whose transit agencies pursued a multidestination service orientation saw productivity increase while those MSAs where agencies focused on serving transit’s traditional CBD market saw productivity fall. These results indicate that policies that have encouraged the growth of suburban transit services have not necessarily been detrimental to the industry.
Paying for Transit in an Era of Federal Policy Change. In Print at Journal of Public Transportation
Public transit agencies rely on a combination of local, state, and federal subsidy to provi
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