Abstract
This is the second part of a two‐part series that examines recent developments in urban passenger transport in the United States and Europe, focusing on the roles and impacts of the public sector as these have varied by country and over time. The first part of the series described public policies for roadway systems and private car use, whereas this second part concentrates on public transport. After a review of demand and supply trends, the article evaluates government policies in terms of public vs private ownership and operation, public regulation, financing responsibility by government level, types and amounts of subsidy, and impacts of ownership, regulation, and financing arrangements on costs and productivity. This second part concludes with an overall comparison between Europe and the United States, and considers how Europeans and Americans might learn from each other's successes and mistakes in order to improve transport policies.

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