American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Optimal Public Transportation Networks: Evidence from the World's Largest Bus Rapid Transit System in Jakarta
American Economic Review
(pp. 3330–79)
Abstract
Designing public transport networks involves trade-offs between coverage, service frequency, and direct service. We use the expansion of the bus system in Jakarta, Indonesia, to study these trade-offs. We analyze how new direct connections, changes in bus travel time, and wait-time reductions affect bus ridership and aggregate flows and estimate a transit network demand model by matching the route launch events. Commuters in Jakarta are 2–3 times more sensitive to wait time than bus time and inattentive to long routes. We develop a flexible framework to characterize optimal networks. A less concentrated network would increase ridership and commuter welfare.Citation
Kreindler, Gabriel, Arya Gaduh, Tilman Graff, Rema Hanna, and Benjamin A. Olken. 2026. "Optimal Public Transportation Networks: Evidence from the World's Largest Bus Rapid Transit System in Jakarta." American Economic Review 116 (9): 3330–79. DOI: 10.1257/aer.20230768Additional Materials
JEL Classification
- L92 Railroads and Other Surface Transportation
- L98 Industry Studies: Utilities and Transportation: Government Policy
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R41 Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
- R42 Transportation Economics: Government and Private Investment Analysis; Road Maintenance, Transportation Planning
- R48 Transportation Economics: Government Pricing and Policy