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Some Determinants of Cost Efficiency in German Public Transport

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  • Matthias Walter

Abstract

This paper evaluates cost efficiency and some of its managerial determinants in Germany's local public transport. A heteroscedastic stochastic frontier approach reveals that a high degree of tramcar utilisation and a high outsourcing degree influence the efficiency predictions positively. Mean efficiencies lie between 0.849 and 0.952, depending on the applied panel data models accounting for unobserved heterogeneity and observed heterogeneous output variables for tram, light railway, and metro services. The inefficiency levels correspond to a savings potential of between € 1.40 and 4.43 billion based on the € 28.23 billion total costs (in 2006 prices) for 254 observations of thirty-nine companies, 1997-2006. © 2011 LSE and the University of Bath

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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy (JTEP).

Volume (Year): 45 (2011)
Issue (Month): 1 (January)
Pages: 1-20

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Handle: RePEc:tpe:jtecpo:v:45:y:2011:i:1:p:1-20

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Web page: http://www.bath.ac.uk/e-journals/jtep

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  1. Massimiliano Piacenza, 2006. "Regulatory Contracts and Cost Efficiency: Stochastic Frontier Evidence from the Italian Local Public Transport," Journal of Productivity Analysis, Springer, vol. 25(3), pages 257-277, 06.
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  12. William Roy & Anne Yvrande-Billon, 2007. "Ownership, Contractual Practices and Technical Efficiency: The Case of Urban Public Transport in France," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 41(2), pages 257-282, May.
  13. Beniamina Buzzo Margari & Fabrizio Erbetta & Carmelo Petraglia & Massimiliano Piacenza, 2006. "Regulatory and Environmental Effects on Public Transit Efficiency. A Mixed DEA-SFA Approach," CERIS Working Paper 200613, Institute for Economic Research on Firms and Growth - Moncalieri (TO).
  14. Cornes,Richard, 1992. "Duality and Modern Economics," Cambridge Books, Cambridge University Press, number 9780521336017, November.
  15. Kumbhakar, Subal C & Hjalmarsson, Lennart, 1995. "Labour-Use Efficiency in Swedish Social Insurance Offices," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 33-47, Jan.-Marc.
  16. Kumbhakar, Subal C., 1990. "Production frontiers, panel data, and time-varying technical inefficiency," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 201-211.
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Cited by:
  1. Sébastien Cucurulo, 2011. "L'ouverture à la concurrence des TER, une opportunité d'affirmation de l'AOT régionale en tant que chef de file de l'organisation des transports régionaux ?," Post-Print dumas-00793119, HAL.
  2. Wolański, Michał, 2011. "Estimation of losses due to the existence of monopolies in urban bus transport in Poland," MPRA Paper 38525, University Library of Munich, Germany.

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