Classification of bus transit policy variables

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Abstract
This paper develops a conceptual model to classify bus transit policy variables based on their effects on the performance levels of the various inputs and total performance measured by the presence or absence of (dis)economies of scale. The four groups of variables identified in the study include those with The policy implications of these groups are examined in the paper. In addition, exceptions to the conceptual model have been identified. Two policy variables, the average daily hours of vehicle operation, and federal capital subsidy availability increase the performance of each input and yet reduce total performance. The methodology adopted allows tests of economies to be examined. The results of this test show economies of scale up to 6 million vehicle miles, constant returns to scale between 6 and 12 million vehicle miles and diseconomies of scale thereafter.

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