Regulation and efficiency in Italian local public transport: the regional differences

Chiara Bentivogli, Roberto Cullino () and Diana Marina Del Colle ()
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Roberto Cullino: Banca d'Italia
Diana Marina Del Colle: Banca d'Italia

No 20, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper studies the effects on local public transport of the reform begun in the late nineties, using data from a recent Bank of Italy survey. There are still substantial differences across Italy’s regions, and the level of efficiency is far from the original aims of the reform. Although almost all Italian regional councils formally aligned the local legislation to the new national rules, actual compliance with the deeper logic of the reform has been limited so far. Competitive tendering for the selection of local service providers have seldom been used, while auctions have usually been won by local public incumbents. Albeit limited, efficiency gains are larger wherever the reform has been implemented more thoroughly and the variables influencing public transport demand more carefully taken into account. The share of the population that uses public transport has not increased even in major cities, and the low share of users (by international standards) has gone hand in hand with a negative overall evaluation of service quality. Fares are still much lower than unit costs.

Keywords: Regulation; Local Public Transport (search for similar items in EconPapers)
JEL-codes: H40 K23 L33 L43 L92 (search for similar items in EconPapers)
Date: 2008-09
New Economics Papers: this item is included in nep-eff, nep-geo, nep-reg and nep-ure
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_20_08

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