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Next Stop: Restructuring? : A Nonparametric Efficiency Analysis of German Public Transport Companies

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Author Info
Christian von Hirschhausen
Astrid Cullmann

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Abstract

In this paper, we present a nonparametric comparative efficiency analysis of 179 communal public transport bus companies in Germany (1990-2004). We apply both deterministic data envelopment analysis (DEA) and bootstrapping to test the robustness of our estimates and to test the hypothesis of global and individual constant returns to scale. We find that the average technical efficiency of German bus companies is relatively low. We observe that the industry appears to be characterized by increasing returns to scale for smaller companies. These results would imply increasing pressure on bus companies to restructure.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 831.

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Length: 32 p.
Date of creation: 2008
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Handle: RePEc:diw:diwwpp:dp831

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Related research
Keywords: Public transport; buses; efficiency analysis; nonparametric methods; DEA; bootstrapping;

Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Léopold Simar, Paul W. Wilson, 2000. "A general methodology for bootstrapping in non-parametric frontier models," Journal of Applied Statistics, Taylor and Francis Journals, vol. 27(6), pages 779-802, August. [Downloadable!] (restricted)
    Other versions:
  2. Cullinane, Kevin & Wang, Teng-Fei & Song, Dong-Wook & Ji, Ping, 2006. "The technical efficiency of container ports: Comparing data envelopment analysis and stochastic frontier analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(4), pages 354-374, May. [Downloadable!] (restricted)
  3. Simar, Leopold & Wilson, Paul W., 2002. "Non-parametric tests of returns to scale," European Journal of Operational Research, Elsevier, vol. 139(1), pages 115-132, May. [Downloadable!] (restricted)
  4. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January. [Downloadable!] (restricted)
  5. Cinzia Daraio & Leopold Simar, 2005. "Conditional Nonparametric Frontier Models for Convex and Non Convex Technologies: a Unifying Approach," LEM Papers Series 2005/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
    Other versions:
  6. Simar, L. & Wilson, P.W., 1999. "Statistical Inference in Nonparametric Frontier Models: the State of the Art," Papers 9904, Catholique de Louvain - Institut de statistique.
  7. De Borger B. & Kerstens K. & Costa A., 2000. "Public transport performance: what do we learn from frontier studies?," Working Papers 2000019, University of Antwerp, Faculty of Applied Economics. [Downloadable!]
  8. Ferrier, Gary D. & Lovell, C. A. Knox, 1990. "Measuring cost efficiency in banking : Econometric and linear programming evidence," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 229-245. [Downloadable!] (restricted)
  9. Massimo Filippini & Paola Prioni, 2003. "The influence of ownership on the cost of bus service provision in Switzerland - an empirical illustration," Applied Economics, Taylor and Francis Journals, vol. 35(6), pages 683-690, January. [Downloadable!] (restricted)
  10. Wilson, Paul W, 1993. "Detecting Outliers in Deterministic Nonparametric Frontier Models with Multiple Outputs," Journal of Business & Economic Statistics, American Statistical Association, vol. 11(3), pages 319-23, July.
  11. Simar, L. & Wilson, P.W., 2000. "Testing Restrictions in Nonparametric Efficiency Models," Papers 0013, Catholique de Louvain - Institut de statistique.
  12. Leonardo J. Basso & Sergio R. Jara-Díaz, 2005. "Calculation of Economies of Spatial Scope from Transport Cost Functions with Aggregate Output with an Application to the Airline Industry," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 39(1), pages 25-52, January. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Matthias Walter & Astrid Cullmann, 2008. "Potential Gains from Mergers in Local Public Transport : An Efficiency Analysis Applied to Germany," Discussion Papers of DIW Berlin 832, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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