Reason Foundation

Reason Foundation

Why Transit is an "Inferior Good"

Samuel Staley
June 26, 2008, 1:46pm

"Normal Goods', according to economists, are those where demand increases with income and wealth. Inferior goods find that their share of income falls as wealth increases. In my most recent post to the blog, I argue that transit is an inferior good. Guess what? Planners disagree. The post prompted a rather lifely discussion string.

Samuel Staley is Research Fellow

Print This