Atlanta's rail rapid transit system, which began operations in 1979 an
d has cost US taxpayers and residents of the Atlanta metropolitan area
more than $3.5 billion, had been identified by advocates of new rail
systems as one of the most successful rail transit systems built in th
e United States since 1945. A policy-sensitive econometric model of th
e determinants of transit ridership shows that Atlanta's transit would
have had more success in achieving cost-effective increases in riders
hip if it had continued the policies it followed successfully in its f
irst eight years of operation, rather than building a costly rail syst
em and raising fares.