Transit Information Center
How does capital invested in service expansion affect the efficiency and effectiveness of transit?
For this analysis transit agencies were divided into two groups:
- Transit agencies that invested in service expansion and service improvements between 2002 and 2007 (Group A); and
- Transit agencies that did not invest in service expansion during the same period, but did invest in service improvements (Group B).
Cost efficiency (funds applied per revenue hour): Group B is more cost efficient as the rate of increase in funds applied for Group A is significantly greater than the increase in revenue hours of service, whereas Group B shows an increase in funds applied relatively consistent with revenue hours.
Cost effectiveness (funds applied per unlinked trip): Group B is more cost effective even though the increase in trips for Group A was nearly 3 times greater than Group B.
Service effectiveness (unlinked trips per revenue hour): Group A is more effective than Group B.
Recovery Ratio (fare revenues per funds applied): Group A’s recovery ratio was slightly better then Group B’s.
Data sources:
The National Transit Database > Monthly Module Adjusted data - August 2008 (http://204.68.195.57/ntdprogram/data.htm)
InflationData.com > The Consumer Price Index > Historical CPI data (http://inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx)