Boston’s subway system, the T, is an important artery for transportation in and around the city. However, it is the oldest subway system in the United States, and, as a result, is in dire need of upgrades. This paper employs a welfare analysis to calculate the economic cost of the T’s lack of reliability, while also comparing the T’s reliability rate to other transit systems around the world. With a counterfactual estimate of a 95 percent reliability rate versus the pre-pandemic 88.47 percent reliability rate, the difference in welfare is found to be between $54 million and $163 million annually. Thus, long overdue improvements to the T would have a significant impact on the overall welfare of the Boston metropolitan area, and serve as a great economic benefit to all stakeholders.
"The Cost of Subway Delays: A Counterfactual Welfare Analysis of Boston’s T,"
Dartmouth Undergraduate Journal of Politics, Economics and World Affairs: Vol. 1
, Article 1.
Available at: https://digitalcommons.dartmouth.edu/dujpew/vol1/iss3/1