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The influence of ownership on the cost of bus service provision in Switzerland - an empirical illustration

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  • Massimo Filippini
  • Paola Prioni

Abstract

In deregulated transport markets, a firm's ownership status and management system represent an important issue. Property right theory suggests that productivity and performance are higher in the private than in the public sector. In Switzerland, providers of bus transportation are traditionally corporations, though a large part of their equity shares are still held by the public sector (federal government, cantons, municipalities). This paper examines the potential impact of ownership on the cost of bus service provision for a sample of private, public and mixed bus companies in Switzerland. The estimation of a translog cost model has been considered for 34 bus transit companies observed over 5 years (1991-1995). The results only partially confirm that if the private sector holds shares in the company's capital, efficiency is enhanced. In addition, measures of economies of scale and density are derived and discussed within the actual public transport policy.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 6 ()
Pages: 683-690

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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:683-690

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  1. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-43, December.
  2. Karlaftis, Matthew G. & McCarthy, Patrick, 2002. "Cost structures of public transit systems: a panel data analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(1), pages 1-18, January.
  3. Button, K J & O'Donnell, K J, 1985. "An Examination of the Cost Structures Associated with Providing Urban Bus Services in Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(1), pages 67-81, February.
  4. Massimo Filippini & Paola Prioni, 1994. "Is Scale and Cost Inefficiency in the Swiss Bus Industry a Regulatory Problem? Evidence from a Frontier Cost Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(2), pages 219-232.
  5. Berechman, Joseph, 1987. "Cost structure and production technology in transit : An application to the Israeli bus transit sector," Regional Science and Urban Economics, Elsevier, vol. 17(4), pages 519-534, November.
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Citations

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Cited by:
  1. Carlo Cambini & Massimiliano Piacenza & Davide Vannoni, 2007. "Restructuring Public Transit Systems: Evidence on Cost Properties from Medium and Large-Sized Companies," Review of Industrial Organization, Springer, vol. 31(3), pages 183-203, November.
  2. Mehdi Farsi & Massimo Filippini & William Greene, 2004. "Efficiency Measurement in Network Industries: Application to the Swiss Railway Companies," CEPE Working paper series 04-32, CEPE Center for Energy Policy and Economics, ETH Zurich.
  3. Daniel Albalate & Germà Bel & Joan Calzada, 2010. "Urban transport governance reform in Barcelona," IREA Working Papers 201009, University of Barcelona, Research Institute of Applied Economics, revised Jun 2010.
  4. Germà Bel & Jordi Rosell, 2014. "“Public and Private Production in a Mixed Delivery System: Regulation, Competition and Costs”," IREA Working Papers 201418, University of Barcelona, Research Institute of Applied Economics, revised May 2014.
  5. Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2006. "Economies of scale and scope in local public transportation," CEPE Working paper series 06-48, CEPE Center for Energy Policy and Economics, ETH Zurich.
  6. Simona Bigerna & Paolo Polinori, 2010. "Ambiente operativo ed efficienza nel settore del trasporto pubblico locale in Italia," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2010(3), pages 85-118.
  7. Deb, Kaushik & Filippini, Massimo, 2011. "Estimating welfare changes from efficient pricing in public bus transit in India," Transport Policy, Elsevier, vol. 18(1), pages 23-31, January.
  8. Andrea Boitani & Marcella Nicolini & Carlo Scarpa, 2009. "Do Competition and Ownership Matter? Evidence from Local Public Transport in Europe," Working Papers 0911, SIET Società Italiana di Economia dei Trasporti e della Logistica.
  9. Amaral, Miguel, 2008. "Public vs private management of public utilities - The case of urban public transport in Europe," Research in Transportation Economics, Elsevier, vol. 22(1), pages 85-90, January.
  10. Mehdi Farsi & Massimo Filippini & Michael Kuenzle, 2006. "Cost Efficiency in Regional Bus Companies: An Application of Alternative Stochastic Frontier Models," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 40(1), pages 95-118, January.
  11. Pestana Barros, Carlos & Peypoch, Nicolas, 2010. "Productivity changes in Portuguese bus companies," Transport Policy, Elsevier, vol. 17(5), pages 295-302, September.
  12. Christian von Hirschhausen & Astrid Cullmann, 2008. "Next Stop: Restructuring?: A Nonparametric Efficiency Analysis of German Public Transport Companies," Discussion Papers of DIW Berlin 831, DIW Berlin, German Institute for Economic Research.
  13. Mathisen, Terje Andreas & Solvoll, Gisle, 2008. "Competitive tendering and structural changes: An example from the bus industry," Transport Policy, Elsevier, vol. 15(1), pages 1-11, January.

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