What question did this study set out to answer?

This analysis aims to investigate the cost structure and economies of scale in bus transport in Israel.

February 28, 2026

Costs, Economies of Scale and Factor Demand in Bus Transport: An Analysis

Key Points

This analysis aims to investigate the cost structure and economies of scale in bus transport in Israel.
Utilized a general translog cost function for analysis
Examined cost dynamics in a privately owned industry
Focused on densely populated areas for contextual relevance
Identified significant economies of scale in bus transport
Found own-price elasticity for capital is greater than for labour
Confirmed concentration of ownership in the bus industry

Abstract

The author, using a general translog cost function, finds that there are economies of scale in bus transport in Israel. The industry is concentrated in private ownership and serves a densely populated area. Own-price elasticity is larger for capital than for labour.

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Cite This Study

J. Berechman (Sat,) studied this question.

synapsesocial.com/papers/69a287b00a974eb0d3c039d2 https://doi.org/https://doi.org/10.3828/jtep.1983.17.1.7

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