Does public transit use increase the economic efficiency of urban areas?

This paper explores the relationship between the scale of public transit services in urban areas of the U.S. and the efficiency of those economies, with efficiency measured by commercial office rents. Panel regressions are estimated in which real office rent is the left-hand variable. The key right-...

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Main Authors: Mathew Drennan, Charles Brecher
Format: Article
Language:English
Published: University of Minnesota Libraries Publishing 2012-12-01
Series:Journal of Transport and Land Use
Subjects:
Online Access:https://www.jtlu.org/index.php/jtlu/article/view/247
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author Mathew Drennan
Charles Brecher
author_facet Mathew Drennan
Charles Brecher
author_sort Mathew Drennan
collection DOAJ
description This paper explores the relationship between the scale of public transit services in urban areas of the U.S. and the efficiency of those economies, with efficiency measured by commercial office rents. Panel regressions are estimated in which real office rent is the left-hand variable. The key right-hand variable is per capita transit use. Other right-hand variables include demand for office space, office vacancy rate, average real wage and unemployment rate. Two-stage least squares equations are estimated to deal with possible simultaneity between office rents and transit use. Results indicate a positive relationship between public transit use and office rents. The relationship is stronger in areas with higher concentrations of office space in the central busines district; however, the estimated dollar impact of transit use on office rents is small.
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issn 1938-7849
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publisher University of Minnesota Libraries Publishing
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series Journal of Transport and Land Use
spelling doaj-art-eed79d425cdd4838b6f5695c6e9b26ba2025-08-20T02:05:03ZengUniversity of Minnesota Libraries PublishingJournal of Transport and Land Use1938-78492012-12-015310.5198/jtlu.v5i3.247121Does public transit use increase the economic efficiency of urban areas?Mathew Drennan0Charles Brecher1UCLANew York UniversityThis paper explores the relationship between the scale of public transit services in urban areas of the U.S. and the efficiency of those economies, with efficiency measured by commercial office rents. Panel regressions are estimated in which real office rent is the left-hand variable. The key right-hand variable is per capita transit use. Other right-hand variables include demand for office space, office vacancy rate, average real wage and unemployment rate. Two-stage least squares equations are estimated to deal with possible simultaneity between office rents and transit use. Results indicate a positive relationship between public transit use and office rents. The relationship is stronger in areas with higher concentrations of office space in the central busines district; however, the estimated dollar impact of transit use on office rents is small.https://www.jtlu.org/index.php/jtlu/article/view/247Transportland Use
spellingShingle Mathew Drennan
Charles Brecher
Does public transit use increase the economic efficiency of urban areas?
Journal of Transport and Land Use
Transport
land Use
title Does public transit use increase the economic efficiency of urban areas?
title_full Does public transit use increase the economic efficiency of urban areas?
title_fullStr Does public transit use increase the economic efficiency of urban areas?
title_full_unstemmed Does public transit use increase the economic efficiency of urban areas?
title_short Does public transit use increase the economic efficiency of urban areas?
title_sort does public transit use increase the economic efficiency of urban areas
topic Transport
land Use
url https://www.jtlu.org/index.php/jtlu/article/view/247
work_keys_str_mv AT mathewdrennan doespublictransituseincreasetheeconomicefficiencyofurbanareas
AT charlesbrecher doespublictransituseincreasetheeconomicefficiencyofurbanareas