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Measuring the Cost Effectiveness of Multimode Bus Transit in the Presence of Accident Risks

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  • Ming-Miin Yu
  • Chih-Ku Fan

Abstract

This study employs the directional graph distance function and the multiactivity data envelopment analysis (DEA) approach, which incorporates both desirable and undesirable outputs, in order to provide a more complete representation of the multimode bus production technology from which environmentally and risk-sensitive cost effectiveness measures can be generated. We treat accident cost as the risky output in the sense that we wish to increase desirable outputs and decrease risky output and inputs. The approach is applied to the problem of measuring the cost effectiveness of 24 bus companies in Taiwan. An empirical illustration suggests that the overall cost effectiveness rankings turn out to be very sensitive to whether or not the graph multiactivity DEA approach is adopted. This implies that the conventional DEA cost effectiveness measure may be seriously misleading if it ignores the cost effectiveness of organizations that carry out various activities whilst sharing common resources.

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  • Ming-Miin Yu & Chih-Ku Fan, 2006. "Measuring the Cost Effectiveness of Multimode Bus Transit in the Presence of Accident Risks," Transportation Planning and Technology, Taylor & Francis Journals, vol. 29(5), pages 383-407, July.
    • Handle: RePEc:taf:transp:v:29:y:2006:i:5:p:383-407
    DOI: 10.1080/03081060600917728
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    1. Yande Gong & Joe Zhu & Ya Chen & Wade D. Cook, 2018. "DEA as a tool for auditing: application to Chinese manufacturing industry with parallel network structures," Annals of Operations Research, Springer, vol. 263(1), pages 247-269, April.
    2. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    3. Cinzia Daraio & Marco Diana & Flavia Di Costa & Claudio Leporelli & Giorgio Matteucci & Alberto Nastasi, 2014. "Efficiency and effectiveness in the urban public transport sector: a critical review with directions for future research," DIAG Technical Reports 2014-14, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    4. Xiyang Lei & Yongjun Li & Alec Morton, 2022. "Dominance and ranking interval in DEA parallel production systems," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(2), pages 649-675, June.
    5. Malin Song & Jianlin Wang & Jiajia Zhao & Tomas Baležentis & Zhiyang Shen, 2020. "Production and safety efficiency evaluation in Chinese coal mines: accident deaths as undesirable output," Annals of Operations Research, Springer, vol. 291(1), pages 827-845, August.
    6. Wang, Ya & Pan, Jiao-feng & Pei, Rui-min & Yi, Bo-Wen & Yang, Guo-liang, 2020. "Assessing the technological innovation efficiency of China's high-tech industries with a two-stage network DEA approach," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    7. Markéta Matulová & Hana Fitzová, 2018. "Transformation of urban public transport financing and its effect on operators’ efficiency: evidence from the Czech Republic," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(4), pages 967-983, December.
    8. Barnum, Darold T. & Karlaftis, Matthew G. & Tandon, Sonali, 2011. "Improving the efficiency of metropolitan area transit by joint analysis of its multiple providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1160-1176.
    9. AGRELL, Per & HATAMI-MARBINI, Adel, 2011. "Frontier-based performance analysis models for supply chain management; state of the art and research directions," LIDAM Discussion Papers CORE 2011069, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Yu, Ming-Miin & Fan, Chih-Ku, 2008. "The effects of privatization on return to the dollar: A case study on technical efficiency, and price distortions of Taiwan's intercity bus services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(6), pages 935-950, July.
    11. Chen, Po-Chi & Hsu, Shih-Hsun & Chang, Ching-Cheng & Ming-Miin, Yu, 2009. "Efficiency Measurements in Multi-activity Data Envelopment Analysis with Shared Inputs: An Application to Farmers’ Organizations in Taiwan," 2009 Conference, August 16-22, 2009, Beijing, China 51657, International Association of Agricultural Economists.
    12. Wanke, Peter & Barros, C.P. & Figueiredo, Otávio, 2016. "Efficiency and productive slacks in urban transportation modes: A two-stage SDEA-Beta Regression approach," Utilities Policy, Elsevier, vol. 41(C), pages 31-39.
    13. Daraio, Cinzia & Diana, Marco & Di Costa, Flavia & Leporelli, Claudio & Matteucci, Giorgio & Nastasi, Alberto, 2016. "Efficiency and effectiveness in the urban public transport sector: A critical review with directions for future research," European Journal of Operational Research, Elsevier, vol. 248(1), pages 1-20.

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