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Radial and nonradial static efficiency decompositions: a focus on congestion measurement

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  • Dervaux, Benoît
  • Kerstens, Kristiaan
  • Vanden Eeckaut, Philippe

Abstract

We summarize and extend the existing frontier literature by outlining proper ways of decomposing efficiency using both radial and nonradial efficiency measures when using nonparametric, deterministic frontier models. Our contribution relates to a recent paper of Viton (Transportation Research-B 31, 23-39, 1997) analysing the efficiency of U.S. multi-mode bus transit systems. In particular, the author evaluates the technical efficiency, congestion and scale properties of these companies. Due to a methodological mistake he could not detect congestion in his sample. Our proposals remedy this problem and focus on the underexplored issue of proper congestion measurement in general and in transport in particular.

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Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

Volume (Year): 32 (1998)
Issue (Month): 5 (June)
Pages: 299-312

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Handle: RePEc:eee:transb:v:32:y:1998:i:5:p:299-312

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  1. Marchand, M. & Mintz, J. & Pestieau, P., . "Shadow pricing of labour and capital in an economy with unemployed labour," CORE Discussion Papers RP -628, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Fare, Rolf & Grosskopf, Shawna & Lovell, C A Knox, 1983. " The Structure of Technical Efficiency," Scandinavian Journal of Economics, Wiley Blackwell, vol. 85(2), pages 181-90.
  3. Patricia Byrnes & Rolf Färe & Shawna Grosskopf & C. A. Knox Lovell, 1988. "The Effect of Unions on Productivity: U.S. Surface Mining of Coal," Management Science, INFORMS, vol. 34(9), pages 1037-1053, September.
  4. FERRIER, Gary & KERSTENS, Kris & VANDEN EECKAUT, Philippe, 1994. "Radial and Nonradial Technical Efficiency Measures on a DEA Reference Technology : A Comparison using US Banking Data," CORE Discussion Papers 1994023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Zieschang, Kimberly D., 1984. "An extended farrell technical efficiency measure," Journal of Economic Theory, Elsevier, vol. 33(2), pages 387-396, August.
  6. Viton, Philip A., 1992. "Consolidations of scale and scope in urban transit," Regional Science and Urban Economics, Elsevier, vol. 22(1), pages 25-49, March.
  7. Viton, Philip A., 1997. "Technical efficiency in multi-mode bus transit: A production frontier analysis," Transportation Research Part B: Methodological, Elsevier, vol. 31(1), pages 23-39, February.
  8. KERSTENs, Kris & VANDEN EECKAUT, Philippe, 1995. "Technical Efficiency Measures on DEA and FDH : A Reconsideration of the Axiomatic Literature," CORE Discussion Papers 1995013, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. John McDonald, 1996. "Note: A Problem with the Decomposition of Technical Inefficiency into Scale and Congestion Components," Management Science, INFORMS, vol. 42(3), pages 473-474, March.
  10. Ray, Subhash C. & Kim, Hiung Joon, 1995. "Cost efficiency in the US steel industry: A nonparametric analysis using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 80(3), pages 654-671, February.
  11. Chu, Xuehao & Fielding, Gordon J. & Lamar, Bruce W., 1992. "Measuring transit performance using data envelopment analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 26(3), pages 223-230, May.
  12. Isabelle Piot-Lepetit & Dominique Vermersch & Robert Weaver, 1997. "Agriculture's environmental externalities: DEA evidence for French agriculture," Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 331-338.
  13. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
  14. Wilson, Paul W., 1991. "The highway speed-volume relationship revisited," Journal of Urban Economics, Elsevier, vol. 29(2), pages 202-206, March.
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Cited by:
  1. Barros, Carlos P. & Bin Liang, Qi & Peypoch, Nicolas, 2013. "The efficiency of French regional airports: An inverse B-convex analysis," International Journal of Production Economics, Elsevier, vol. 141(2), pages 668-674.
  2. Cullinane, Kevin & Wang, Teng-Fei & Song, Dong-Wook & Ji, Ping, 2006. "The technical efficiency of container ports: Comparing data envelopment analysis and stochastic frontier analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(4), pages 354-374, May.
  3. Odeck, James, 2006. "Congestion, ownership, region of operation, and scale: Their impact on bus operator performance in Norway," Socio-Economic Planning Sciences, Elsevier, vol. 40(1), pages 52-69, March.
  4. KERSTENS , Kristiaan & VANDEN EECKAUT, Philippe, 1998. "Distinguishing technical and scale efficiency on non-convex and convex technologies: theoretical analysis and empirical illustrations," CORE Discussion Papers 1998055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Gonzalez, Eduardo & Alvarez, Antonio, 2001. "From efficiency measurement to efficiency improvement: The choice of a relevant benchmark," European Journal of Operational Research, Elsevier, vol. 133(3), pages 512-520, September.

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