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Overcoming Bias Commenter's avatar

As a bus passenger, you should expect to observe a higher-than-average occupancy, since you're more likely to be on a more popular bus.

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Overcoming Bias Commenter's avatar

There are in fact massive government subsidies for construction of rail in Toko -- since 1962, about 70% of subway construction costs are covered by governments.

http://www.jrtr.net/jrtr23/...

Since much of the ongoing cost of any large infrastructure project is the cost of capital, if you don't consider government subsidies for construction and possibly the provision of credit on relatively easy terms, you're missing a big part of the financial picture. What's the difference between a government subsidy and a loan at a rate of interest hardly above the inflation rate? You tell me. How about if you can remove capital costs from your balance sheet, report a "profit" as a result, and thus qualify for a subsidy proportional to that "profit? Well, then you use the subsidy payments to cover interest on the loan, right? Maybe even pay back some of the principal.

Don't get me wrong -- I love the train system here. I think it's the way to go. But mass transit has always required subsidies, and probably always will.

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