Costs and Technology of Public Transit Systems in Italy:Some Insights to Face Inefficiency
AbstractThis study provides fresh evidence about the characteristics of technology and cost structure of public transit systems in Italy. The aim is to suggest useful guidelines for facing detected inefficiencies. The analysis is carried out through the estimation of a translog variable cost function. The sample includes 45 Italian public companies. Firms are observed in the years 1996, 1997 and 1998, and operate both in the urban and extra-urban compartments. Results support previous evidence on the existence of natural monopoly at local level and stress the importance of the average speed of vehicles in explaining cost differences between companies. We conclude that cost benefits can be achieved by promoting mergers between firms (whenever possible), introducing some forms of "competition-for-the-market" (e.g., competitive tendering for the single license) and taking more care of the local traffic regulation.
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Bibliographic InfoPaper provided by Institute for Economic Research on Firms and Growth - Moncalieri (TO) in its series CERIS Working Paper with number 200112.
Length: 28 pages Keywords : local public transport, cost structure, technology, regulation
Date of creation: Dec 2001
Date of revision:
Find related papers by JEL classification:
- L5 - Industrial Organization - - Regulation and Industrial Policy
- L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
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