Why Transit is an “Inferior Good”

“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 R. Staley, Ph.D. is a senior research fellow at Reason Foundation and managing director of the DeVoe L. Moore Center at Florida State University in Tallahassee where he teaches graduate and undergraduate courses in urban planning, regulation, and urban economics. Prior to joining Florida State, Staley was director of urban growth and land-use policy for Reason Foundation where he helped establish its urban policy program in 1997.