Empirical Evidence of the Effect of Fare Subsidies in Transition Economies

Nina Bočková

Eastern European Economics, 2023, vol. 61, issue 3, 290-310

Abstract: This paper examines the impact of two government measures in the Czech Republic and the Slovak Republic: the number of passengers transported by rail and the kilometers traveled. Eurostat data were used to develop an autoregressive integrated moving average (ARIMA) statistical model for capturing the time-series trend. The results confirm statistically significant differences in the Slovak Republic after introducing fare-free public transport (FFPT). Passenger-transport volumes increased by 449,000 quarterly; passenger-kilometer volumes increased by 23.2 million. A similar government intervention – in the Czech Republic – was statistically insignificant. Passenger-transport volumes increased by 1.17 million and passenger-kilometers increased by 42.9 million quarterly; but compensation to railway operators increased by 763%.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:mes:eaeuec:v:61:y:2023:i:3:p:290-310

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DOI: 10.1080/00128775.2022.2153698

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