Potential Gains from Mergers in Local Public Transport: An Efficiency Analysis Applied to Germany
AbstractWe analyze potential gains from hypothetical mergers in local public transport using the non-parametric Data Envelopment Analysis with bias corrections by means of bootstrapping. Our sample consists of 41 public transport companies from Germany's most densely populated region, North Rhine-Westphalia. We merge them into geographically meaningful, larger units that operate partially on a joint tram network. Merger gains are then decomposed into individual technical efficiency, synergy and size effects following the methodology of Bogetoft and Wang [Bogetoft, P., Wang, D., 2005. Estimating the Potential Gains from Mergers. Journal of Productivity Analysis, 23(2), 145-171]. Our empirical findings suggest that substantial gains up to 16 percent of factor inputs are present, mainly resulting from synergy effects.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 832.
Length: 35 p.
Date of creation: 2008
Date of revision:
Merger; Public Transport; Efficiency; Data Envelopment Analysis;
Find related papers by JEL classification:
- L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-04 (All new papers)
- NEP-COM-2008-11-04 (Industrial Competition)
- NEP-EFF-2008-11-04 (Efficiency & Productivity)
- NEP-IND-2008-11-04 (Industrial Organization)
- NEP-PBE-2008-11-04 (Public Economics)
- NEP-URE-2008-11-04 (Urban & Real Estate Economics)
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