Cristián Guevara - Academia.edu (original) (raw)
Papers by Cristián Guevara
Journal of Transport Economics and Policy
Many travel choice models estimated throughout the world have been used to calculate the full val... more Many travel choice models estimated throughout the world have been used to calculate the full value of travel time savings. Its components, however, have never been estimated quantitatively. This article takes into consideration the fact that travel (mode) choice and activity demand models come from a common microeconomic framework such that their specifications are linked. The authors show that estimating both types of models from the same population makes it possible to obtain all components of the subjective value of travel time savings empirically because the models share some common parameters. This novel approach is experimentally applied using information on travel choices and homework activities for two income groups collected in Santiago, Chile.
Transportation Research Record: Journal of the Transportation Research Board, 2006
Page 1. 60 Transportation Research Record: Journal of the Transportation Research Board, No. 1977... more Page 1. 60 Transportation Research Record: Journal of the Transportation Research Board, No. 1977, Transportation Research Board of the National Academies, Washington, DC, 2006, pp. 6066. Empirical residential location ...
Transportation Science, 2014
ABSTRACT Sampling of alternatives is often required in discrete choice models to reduce the compu... more ABSTRACT Sampling of alternatives is often required in discrete choice models to reduce the computational burden and to avoid describing a large number of attributes. This approach has been used in many areas, including modeling of route choice, vehicle ownership, trip destination, residential location, and activity scheduling. The need for sampling of alternatives is accentuated for Random Regret Minimization (RRM) models, because, unlike Random Utility Models (RUM), the regret function for each alternative depends on all the alternatives in the choice-set. In this paper we develop and test a method to achieve consistency, asymptotic normality and relative efficiency of the estimators, while sampling alternatives in a class of models that includes RRM. The proposed method can be seen as an extension of the approach used to address sampling of alternatives in Multivariate Extreme Value (MEV) models. We illustrate the methodology using Monte Carlo experimentation and a case study with real data. Experiments show that the proposed method is practical, performs better than a truncated model and results in finite-sample estimates that provide a good approximation of those obtained with a model considering all the alternatives.
Transportation Research Record: Journal of the Transportation Research Board, 2009
Page 1. ulation (1). In fact, solving the integral analytically is often impossi-ble and only pro... more Page 1. ulation (1). In fact, solving the integral analytically is often impossi-ble and only problems of small dimensions can be handled. The few examples that used the quadrature to solve the integral include at the most two-dimensional ...
IEEE Vehicular Technology Conference, 2009
The traditional relationship between the car, driver, and city can be described as waypoint navig... more The traditional relationship between the car, driver, and city can be described as waypoint navigation with additional traffic and maintenance information. The car can receive and store waypoint information, find the shortest route to these waypoints, integrate traffic information, find points-of-interest, and alert the driver of a pre-programmed set of maintenance issues related to the car. Here, we propose a new route system that is multi-goal-centric rather than waypoint-centric. Instead of focusing on determining the route to a specified waypoint, as done in commercially available navigation systems, the system will analyze the driver's behavior in order to extract the potential set(s) of goals that the driver would like to achieve. The system must also understand the city on a number of levels: physical, social, and commercial. This provides the foundation for a social and intelligent driving assistant, that helps the driver achieve his goals and helps the city perform better through interaction between both entities.
Transportation Science, 2012
Endogeneity is a model misspecification that precludes the consistent estimation of the model par... more Endogeneity is a model misspecification that precludes the consistent estimation of the model parameters. The control-function method is the most suitable tool to address endogeneity for several discrete choice models that are relevant in transportation research. However, the estimators obtained with the control-function method are consistent only up to a scale. In this paper, we first depict the determinants of this change of scale by adapting an existing result for omitted orthogonal attributes in Logit models. Then, we study the problem of forecasting under these circumstances. We show that a procedure proposed in previous literature may lead to significant biases, and we suggest novel alternatives to be used with synthetic populations. We use Monte Carlo experimentation and real data on residential location choice to demonstrate these results. The paper finishes by summarizing the findings of this investigation and suggesting future lines of research in this area.
Transportation Research Record: Journal of the Transportation Research Board, 2012
ABSTRACT The random coefficients logit model allows a more realistic representation of agents&... more ABSTRACT The random coefficients logit model allows a more realistic representation of agents' behavior. However, the estimation of that model may involve simulation, which may become impractical with many random coefficients because of the curse of dimensionality. In this paper, the traditional maximum simulated likelihood (MSL) method is compared with the alternative expectation-maximization (EM) method, which does not require simulation. Previous literature had shown that for cross-sectional data, MSL outperforms the EM method in the ability to recover the true parameters and estimation time and that EM has more difficulty in recovering the true scale of the coefficients. In this paper, the analysis is extended from cross-sectional data to the less volatile case of panel data to explore the effect on the relative performance of the methods with several realizations of the random coefficients. In a series of Monte Carlo experiments, evidence suggested four main conclusions: (a) efficiency increased when the true variance-covariance matrix became diagonal, (b) EM was more robust to the curse of dimensionality in regard to efficiency and estimation time, (c) EM did not recover the true scale with cross-sectional or with panel data, and (d) EM systematically attained more efficient estimators than the MSL method. The results imply that if the purpose of the estimation is only to determine the ratios of the model parameters (e.g., the value of time), the EM method should be preferred. For all other cases, MSL should be used.
Transportation Research Part B: Methodological, 2012
When the dimension of the vector of estimated parameters increases, simulation based methods beco... more When the dimension of the vector of estimated parameters increases, simulation based methods become impractical, because the number of draws required for estimation grows exponentially with the number of parameters. The lack of empirical identification when the number of parameters increases is usually known as the “curse of dimensionality” in the simulation methods. We investigate this problem in the case
Transportation Research Part B: Methodological, 2013
ABSTRACT Employing a strategy of sampling of alternatives is necessary for various transportation... more ABSTRACT Employing a strategy of sampling of alternatives is necessary for various transportation models that have to deal with large choice-sets. In this article, we propose a method to obtain consistent, asymptotically normal and relatively efficient estimators for Logit Mixture models while sampling alternatives. Our method is an extension of previous results for Logit and MEV models. We show that the practical application of the proposed method for Logit Mixture can result in a Naïve approach, in which the kernel is replaced by the usual sampling correction for Logit. We give theoretical support for previous applications of the Naïve approach, showing not only that it yields consistent estimators, but also providing its asymptotic distribution for proper hypothesis testing. We illustrate the proposed method using Monte Carlo experimentation and real data. Results provide further evidence that the Naïve approach is suitable and practical. The article concludes by summarizing the findings of this research, assessing their potential impact, and suggesting extensions of the research in this area.
Transportation Research Part B: Methodological, 2013
Page 1. 1 Sampling of Alternatives in Multivariate Extreme Value (MEV) Models by Cristian Angelo ... more Page 1. 1 Sampling of Alternatives in Multivariate Extreme Value (MEV) Models by Cristian Angelo Guevara Universidad de los Andes, Chile Facultad de Ingeniería and Massachusetts Institute of Technology Department of Civil ...
Transport Policy, 2014
ABSTRACT We use micro-simulation to assess five tactical designs seeking variance reduction of a ... more ABSTRACT We use micro-simulation to assess five tactical designs seeking variance reduction of a high-demand transfer stop that resembles a representative case of Transantiago, the public transportation system of Santiago de Chile. We explore: demand splitting, route differentiation, offline holding, online holding, and prepayment; all of which are applied locally at the transfer stop, and affecting only the feeders. We analyze the impacts over operators and users, both at the transfer stop and downstream, finding that online holding has the best performance overall. These findings were robust to various changes in the simulation assumptions. The paper finishes discussing implications of these results for public policy design, and possible extensions of this research.
Transport Policy, 2007
We analyse various Multiple Classification Analysis (MCA) methods to model trip production (gener... more We analyse various Multiple Classification Analysis (MCA) methods to model trip production (generation). We first show that the MCA version most widely used in transport engineering implies a rarely feasible assumption, the transgression of which may drive a significant overestimation of the future number of trips and a systematic bias in its socio-economic composition. To illustrate this effect, we use
We use an iterative methodology to calculate Pigouvian tolls when the street is shared by cars an... more We use an iterative methodology to calculate Pigouvian tolls when the street is shared by cars and buses. We compare scenarios where: 1) the toll is calculated, conventionally, considering only the externality over other vehicles; 2) the toll is calculated considering the impact over other vehicles' passengers; 3) no tolls are applied; 4) no tolls are applied, but some lanes or streets are reserved for buses. The methodology is applied first to a synthetic-model that considers homogeneity of demand and some level of heterogeneity of supply. Then, the methodology is extended to a city-model, a simultaneous four-stage model calibrated with real data from Santiago, Chile. Results show that when the externality over passengers is considered, car tolls in roads of mixed-use are significantly higher than conventionally estimated and, consequently, car flows shrink on those roads. Simulation results also show that the outcome of the reservation of capacity for buses depends on a careful design of this policy and could range from a social detriment, to be significantly superior to Pigouvian pricing. Experiments also show that, if bus' paths are fixed, tolls calculated considering the externality over vehicle's users may result in a social detriment. Finally, all Pigouvian pricing scenarios in the city-model resulted in a reduction in social welfare. This remarkable result can be attributed to: 1) the fact that the citymodel tends to simile general equilibrium, whereas Pigouvian tolls are calculated from a partial equilibrium perspective; 2) limitations of the city-model or a manifestation of Coase's counterexample for Pigouvian taxation, resulting from the fact that agent's opportunity cost is heterogeneous. We finish discussing the impact of these findings in policy analysis. menor flujo de automóviles en dichas vías. Por otro lado, las simulaciones con el modelo idealizado muestran que el efecto de la reservación de pistas depende fuertemente del diseño considerado. Respecto de la tarificación Pigouviana, el experimento con datos reales muestra, sorprendentemente, que dicha política resultaría ser inferior a un escenario en el cual no se aplican tarifas. Este resultado podría atribuirse a: 1) que el modelo con datos reales representa una situación de equilibrio general y en cambio las tarifas Pigouvianas se calculan usando un enfoque de equilibrio parcial; 2) limitaciones de modelación en el experimento con datos reales; o 3) una manifestación del contraejemplo de Coase para los impuestos Pigouvianos. El artículo termina discutiendo el impacto de estos resultados en el análisis de políticas de transporte urbano.
Page 374. Chapter 16 Addressing Endogeneity in Discrete Choice Models: Assessing Control-Function... more Page 374. Chapter 16 Addressing Endogeneity in Discrete Choice Models: Assessing Control-Function and Latent-Variable Methods Cristian Angelo Guevara and Moshe Ben-Akiva Abstract Endogeneity or nonorthogonality ...
Addressing the problem of omitted attributes and employing a sampling of alternatives strategy, a... more Addressing the problem of omitted attributes and employing a sampling of alternatives strategy, are two key requirements of practical spatial choice models. The omission of attributes causes endogeneity when the unobserved variables are correlated with the measured variables, precluding the consistent estimation of the model parameters. The consistent estimation while sampling alternatives in non-Logit models has been an open problem for three decades. This dissertation is concerned with both the endogeneity and the sampling of alternatives in non-Logit models, two problems that have hindered the development of suitable modeling tools for urban policy analysis, but have been neglected in spatial choice modeling.
Many travel choice models estimated throughout the world have been used to calculate the full val... more Many travel choice models estimated throughout the world have been used to calculate the full value of travel time savings. Its components, however, have never been estimated quantitatively. This article takes into consideration the fact that travel (mode) choice and activity demand models come from a common microeconomic framework such that their specifications are linked. The authors show that estimating both types of models from the same population makes it possible to obtain all components of the subjective value of travel time savings empirically because the models share some common parameters. This novel approach is experimentally applied using information on travel choices and homework activities for two income groups collected in Santiago, Chile.
Transport Policy, 2011
We analyze urban congestion management policies through numerical analysis of a simple model that... more We analyze urban congestion management policies through numerical analysis of a simple model that: allows users to choose between car, bus or an outside option (biking); consider congestion interactions between cars and buses; and allow for optimization of frequency, vehicle size, spacing between stops and percentage of capacity to be dedicated to bus lanes. We compare resulting service levels, social welfare and consumer surplus for a number of different policies and find that (i) dedicated bus lanes is a better stand-alone policy than transit subsidization or congestion pricing. The latter is marginally better than subsidization but has a negative impact in consumer surplus. (ii) efficient transit subsidies are quite large since in many cases first-best transit price is negative; establishing dedicated bus lanes or implementing congestion pricing render subsidies unnecessary for high demand levels. (iii) both subsidization and dedicated bus lanes would count with public support while congestion pricing would probably encounter strong opposition. (iv) transit subsidies and/or congestion pricing do not induce large changes on optimal bus size, frequency, circulation speeds and spacing between stops in mixed-traffic conditions: dedicated bus lanes do. (v) In all cases analyzed, revenues from congestion pricing are enough to cover transit subsidies; the optimal percentage of capacity that should be devoted for bus traffic is around one third.
Journal of Transport Economics and Policy
Many travel choice models estimated throughout the world have been used to calculate the full val... more Many travel choice models estimated throughout the world have been used to calculate the full value of travel time savings. Its components, however, have never been estimated quantitatively. This article takes into consideration the fact that travel (mode) choice and activity demand models come from a common microeconomic framework such that their specifications are linked. The authors show that estimating both types of models from the same population makes it possible to obtain all components of the subjective value of travel time savings empirically because the models share some common parameters. This novel approach is experimentally applied using information on travel choices and homework activities for two income groups collected in Santiago, Chile.
Transportation Research Record: Journal of the Transportation Research Board, 2006
Page 1. 60 Transportation Research Record: Journal of the Transportation Research Board, No. 1977... more Page 1. 60 Transportation Research Record: Journal of the Transportation Research Board, No. 1977, Transportation Research Board of the National Academies, Washington, DC, 2006, pp. 6066. Empirical residential location ...
Transportation Science, 2014
ABSTRACT Sampling of alternatives is often required in discrete choice models to reduce the compu... more ABSTRACT Sampling of alternatives is often required in discrete choice models to reduce the computational burden and to avoid describing a large number of attributes. This approach has been used in many areas, including modeling of route choice, vehicle ownership, trip destination, residential location, and activity scheduling. The need for sampling of alternatives is accentuated for Random Regret Minimization (RRM) models, because, unlike Random Utility Models (RUM), the regret function for each alternative depends on all the alternatives in the choice-set. In this paper we develop and test a method to achieve consistency, asymptotic normality and relative efficiency of the estimators, while sampling alternatives in a class of models that includes RRM. The proposed method can be seen as an extension of the approach used to address sampling of alternatives in Multivariate Extreme Value (MEV) models. We illustrate the methodology using Monte Carlo experimentation and a case study with real data. Experiments show that the proposed method is practical, performs better than a truncated model and results in finite-sample estimates that provide a good approximation of those obtained with a model considering all the alternatives.
Transportation Research Record: Journal of the Transportation Research Board, 2009
Page 1. ulation (1). In fact, solving the integral analytically is often impossi-ble and only pro... more Page 1. ulation (1). In fact, solving the integral analytically is often impossi-ble and only problems of small dimensions can be handled. The few examples that used the quadrature to solve the integral include at the most two-dimensional ...
IEEE Vehicular Technology Conference, 2009
The traditional relationship between the car, driver, and city can be described as waypoint navig... more The traditional relationship between the car, driver, and city can be described as waypoint navigation with additional traffic and maintenance information. The car can receive and store waypoint information, find the shortest route to these waypoints, integrate traffic information, find points-of-interest, and alert the driver of a pre-programmed set of maintenance issues related to the car. Here, we propose a new route system that is multi-goal-centric rather than waypoint-centric. Instead of focusing on determining the route to a specified waypoint, as done in commercially available navigation systems, the system will analyze the driver's behavior in order to extract the potential set(s) of goals that the driver would like to achieve. The system must also understand the city on a number of levels: physical, social, and commercial. This provides the foundation for a social and intelligent driving assistant, that helps the driver achieve his goals and helps the city perform better through interaction between both entities.
Transportation Science, 2012
Endogeneity is a model misspecification that precludes the consistent estimation of the model par... more Endogeneity is a model misspecification that precludes the consistent estimation of the model parameters. The control-function method is the most suitable tool to address endogeneity for several discrete choice models that are relevant in transportation research. However, the estimators obtained with the control-function method are consistent only up to a scale. In this paper, we first depict the determinants of this change of scale by adapting an existing result for omitted orthogonal attributes in Logit models. Then, we study the problem of forecasting under these circumstances. We show that a procedure proposed in previous literature may lead to significant biases, and we suggest novel alternatives to be used with synthetic populations. We use Monte Carlo experimentation and real data on residential location choice to demonstrate these results. The paper finishes by summarizing the findings of this investigation and suggesting future lines of research in this area.
Transportation Research Record: Journal of the Transportation Research Board, 2012
ABSTRACT The random coefficients logit model allows a more realistic representation of agents&... more ABSTRACT The random coefficients logit model allows a more realistic representation of agents' behavior. However, the estimation of that model may involve simulation, which may become impractical with many random coefficients because of the curse of dimensionality. In this paper, the traditional maximum simulated likelihood (MSL) method is compared with the alternative expectation-maximization (EM) method, which does not require simulation. Previous literature had shown that for cross-sectional data, MSL outperforms the EM method in the ability to recover the true parameters and estimation time and that EM has more difficulty in recovering the true scale of the coefficients. In this paper, the analysis is extended from cross-sectional data to the less volatile case of panel data to explore the effect on the relative performance of the methods with several realizations of the random coefficients. In a series of Monte Carlo experiments, evidence suggested four main conclusions: (a) efficiency increased when the true variance-covariance matrix became diagonal, (b) EM was more robust to the curse of dimensionality in regard to efficiency and estimation time, (c) EM did not recover the true scale with cross-sectional or with panel data, and (d) EM systematically attained more efficient estimators than the MSL method. The results imply that if the purpose of the estimation is only to determine the ratios of the model parameters (e.g., the value of time), the EM method should be preferred. For all other cases, MSL should be used.
Transportation Research Part B: Methodological, 2012
When the dimension of the vector of estimated parameters increases, simulation based methods beco... more When the dimension of the vector of estimated parameters increases, simulation based methods become impractical, because the number of draws required for estimation grows exponentially with the number of parameters. The lack of empirical identification when the number of parameters increases is usually known as the “curse of dimensionality” in the simulation methods. We investigate this problem in the case
Transportation Research Part B: Methodological, 2013
ABSTRACT Employing a strategy of sampling of alternatives is necessary for various transportation... more ABSTRACT Employing a strategy of sampling of alternatives is necessary for various transportation models that have to deal with large choice-sets. In this article, we propose a method to obtain consistent, asymptotically normal and relatively efficient estimators for Logit Mixture models while sampling alternatives. Our method is an extension of previous results for Logit and MEV models. We show that the practical application of the proposed method for Logit Mixture can result in a Naïve approach, in which the kernel is replaced by the usual sampling correction for Logit. We give theoretical support for previous applications of the Naïve approach, showing not only that it yields consistent estimators, but also providing its asymptotic distribution for proper hypothesis testing. We illustrate the proposed method using Monte Carlo experimentation and real data. Results provide further evidence that the Naïve approach is suitable and practical. The article concludes by summarizing the findings of this research, assessing their potential impact, and suggesting extensions of the research in this area.
Transportation Research Part B: Methodological, 2013
Page 1. 1 Sampling of Alternatives in Multivariate Extreme Value (MEV) Models by Cristian Angelo ... more Page 1. 1 Sampling of Alternatives in Multivariate Extreme Value (MEV) Models by Cristian Angelo Guevara Universidad de los Andes, Chile Facultad de Ingeniería and Massachusetts Institute of Technology Department of Civil ...
Transport Policy, 2014
ABSTRACT We use micro-simulation to assess five tactical designs seeking variance reduction of a ... more ABSTRACT We use micro-simulation to assess five tactical designs seeking variance reduction of a high-demand transfer stop that resembles a representative case of Transantiago, the public transportation system of Santiago de Chile. We explore: demand splitting, route differentiation, offline holding, online holding, and prepayment; all of which are applied locally at the transfer stop, and affecting only the feeders. We analyze the impacts over operators and users, both at the transfer stop and downstream, finding that online holding has the best performance overall. These findings were robust to various changes in the simulation assumptions. The paper finishes discussing implications of these results for public policy design, and possible extensions of this research.
Transport Policy, 2007
We analyse various Multiple Classification Analysis (MCA) methods to model trip production (gener... more We analyse various Multiple Classification Analysis (MCA) methods to model trip production (generation). We first show that the MCA version most widely used in transport engineering implies a rarely feasible assumption, the transgression of which may drive a significant overestimation of the future number of trips and a systematic bias in its socio-economic composition. To illustrate this effect, we use
We use an iterative methodology to calculate Pigouvian tolls when the street is shared by cars an... more We use an iterative methodology to calculate Pigouvian tolls when the street is shared by cars and buses. We compare scenarios where: 1) the toll is calculated, conventionally, considering only the externality over other vehicles; 2) the toll is calculated considering the impact over other vehicles' passengers; 3) no tolls are applied; 4) no tolls are applied, but some lanes or streets are reserved for buses. The methodology is applied first to a synthetic-model that considers homogeneity of demand and some level of heterogeneity of supply. Then, the methodology is extended to a city-model, a simultaneous four-stage model calibrated with real data from Santiago, Chile. Results show that when the externality over passengers is considered, car tolls in roads of mixed-use are significantly higher than conventionally estimated and, consequently, car flows shrink on those roads. Simulation results also show that the outcome of the reservation of capacity for buses depends on a careful design of this policy and could range from a social detriment, to be significantly superior to Pigouvian pricing. Experiments also show that, if bus' paths are fixed, tolls calculated considering the externality over vehicle's users may result in a social detriment. Finally, all Pigouvian pricing scenarios in the city-model resulted in a reduction in social welfare. This remarkable result can be attributed to: 1) the fact that the citymodel tends to simile general equilibrium, whereas Pigouvian tolls are calculated from a partial equilibrium perspective; 2) limitations of the city-model or a manifestation of Coase's counterexample for Pigouvian taxation, resulting from the fact that agent's opportunity cost is heterogeneous. We finish discussing the impact of these findings in policy analysis. menor flujo de automóviles en dichas vías. Por otro lado, las simulaciones con el modelo idealizado muestran que el efecto de la reservación de pistas depende fuertemente del diseño considerado. Respecto de la tarificación Pigouviana, el experimento con datos reales muestra, sorprendentemente, que dicha política resultaría ser inferior a un escenario en el cual no se aplican tarifas. Este resultado podría atribuirse a: 1) que el modelo con datos reales representa una situación de equilibrio general y en cambio las tarifas Pigouvianas se calculan usando un enfoque de equilibrio parcial; 2) limitaciones de modelación en el experimento con datos reales; o 3) una manifestación del contraejemplo de Coase para los impuestos Pigouvianos. El artículo termina discutiendo el impacto de estos resultados en el análisis de políticas de transporte urbano.
Page 374. Chapter 16 Addressing Endogeneity in Discrete Choice Models: Assessing Control-Function... more Page 374. Chapter 16 Addressing Endogeneity in Discrete Choice Models: Assessing Control-Function and Latent-Variable Methods Cristian Angelo Guevara and Moshe Ben-Akiva Abstract Endogeneity or nonorthogonality ...
Addressing the problem of omitted attributes and employing a sampling of alternatives strategy, a... more Addressing the problem of omitted attributes and employing a sampling of alternatives strategy, are two key requirements of practical spatial choice models. The omission of attributes causes endogeneity when the unobserved variables are correlated with the measured variables, precluding the consistent estimation of the model parameters. The consistent estimation while sampling alternatives in non-Logit models has been an open problem for three decades. This dissertation is concerned with both the endogeneity and the sampling of alternatives in non-Logit models, two problems that have hindered the development of suitable modeling tools for urban policy analysis, but have been neglected in spatial choice modeling.
Many travel choice models estimated throughout the world have been used to calculate the full val... more Many travel choice models estimated throughout the world have been used to calculate the full value of travel time savings. Its components, however, have never been estimated quantitatively. This article takes into consideration the fact that travel (mode) choice and activity demand models come from a common microeconomic framework such that their specifications are linked. The authors show that estimating both types of models from the same population makes it possible to obtain all components of the subjective value of travel time savings empirically because the models share some common parameters. This novel approach is experimentally applied using information on travel choices and homework activities for two income groups collected in Santiago, Chile.
Transport Policy, 2011
We analyze urban congestion management policies through numerical analysis of a simple model that... more We analyze urban congestion management policies through numerical analysis of a simple model that: allows users to choose between car, bus or an outside option (biking); consider congestion interactions between cars and buses; and allow for optimization of frequency, vehicle size, spacing between stops and percentage of capacity to be dedicated to bus lanes. We compare resulting service levels, social welfare and consumer surplus for a number of different policies and find that (i) dedicated bus lanes is a better stand-alone policy than transit subsidization or congestion pricing. The latter is marginally better than subsidization but has a negative impact in consumer surplus. (ii) efficient transit subsidies are quite large since in many cases first-best transit price is negative; establishing dedicated bus lanes or implementing congestion pricing render subsidies unnecessary for high demand levels. (iii) both subsidization and dedicated bus lanes would count with public support while congestion pricing would probably encounter strong opposition. (iv) transit subsidies and/or congestion pricing do not induce large changes on optimal bus size, frequency, circulation speeds and spacing between stops in mixed-traffic conditions: dedicated bus lanes do. (v) In all cases analyzed, revenues from congestion pricing are enough to cover transit subsidies; the optimal percentage of capacity that should be devoted for bus traffic is around one third.