We estimate the standard costs in the Italian local bus transport system by means of a top down approach. Commercial speed results the most important cost driver, while economies of scale are low and only present in the case of small transport operators. Medium sized and large operators exhibit diseconomies of scale. We find a positive correlation between investments in bus fleet and service cost. The model aims at introducing policy criteria for the allocation of public funds earmarked to the local public transit sector among Italian regions.
Keywords: Standard cost, local public transport, fiscal federalism, cost proxy models
Jel Code: H50, L50, L92, R48
Alessandro Avenali, Andrea Boitani, Giuseppe Catalano, Tiziana D'Alfonso, Giorgio Matteucci, An econometric cost model for local public bus transport: evidence from Italy in "ECONOMIA E POLITICA INDUSTRIALE " 4/2014, pp. 181-213, DOI:10.3280/POLI2014-004009