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The Effects of Ownership Structure, Competition, and Cross-Subsidisation on the Efficiency of Public Bus Transport: Empirical Evidence from Germany

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  • Raimund Scheffler
  • Karl-Hans Hartwig
  • Robert Malina

Abstract

This paper quantifies the technical efficiency of German public bus transport companies and discusses main factors influencing their performance, using a stochastic production frontier approach. We test for the efficiency impact of ownership structure, competitive tendering, and potential cross-subsidisation in multi-utility enterprises. Companies that operate in regions where competitive tendering takes place reveal a significantly higher mean efficiency than other companies. Companies that are part of multi-utility enterprises have a significantly lower mean efficiency. Ownership structure has no impact on efficiency. © 2013 LSE and the University of Bath

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  • Raimund Scheffler & Karl-Hans Hartwig & Robert Malina, 2013. "The Effects of Ownership Structure, Competition, and Cross-Subsidisation on the Efficiency of Public Bus Transport: Empirical Evidence from Germany," Journal of Transport Economics and Policy, University of Bath, vol. 47(3), pages 371-386, September.
    • Handle: RePEc:tpe:jtecpo:v:47:y:2013:i:3:p:371-386
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    Cited by:

    1. Merkert, Rico & Mulley, Corinne & Hakim, Md Mahbubul, 2018. "Trade-offs between transaction cost, operation cost and innovation in the context of procurement and asset specificity – The example of the bus industry," Research in Transportation Economics, Elsevier, vol. 69(C), pages 173-179.
    2. Mizuta, Seiichiro, 2020. "Deregulation and competition in Japanese intercity coach industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 17-34.
    3. Filippini, M. & Koller, M. & Masiero, G., 2015. "Competitive tendering versus performance-based negotiation in Swiss public transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 158-168.
    4. Fageda, Xavier & Sansano, Sergi, 2018. "Factors influencing prices and frequencies in the interurban bus market: Evidence from Europe," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 266-276.
    5. Mouwen, Arnoud & van Ommeren, Jos, 2016. "The effect of contract renewal and competitive tendering on public transport costs, subsidies and ridership," Transportation Research Part A: Policy and Practice, Elsevier, vol. 87(C), pages 78-89.

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