Cullmann, Astrid () (DIW Berlin (German Institute for Economic Research), Germany) Farsi, Mehdi (Centre for Energy Policy and Economics (CEPE), Department of Management, Technology, and Economics, ETH Zürich, Switzerland) Filippini Massimo (Istituto Mecop, Facoltà di Scienze economiche, Università della Svizzera italiana, Svizzera)
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We analyze the technical efficiency of German and Swiss urban public transport companies by means of SFA. In transport networks we might face different network structures or complexities, not observed, but influencing the production process. The unobserved factors are typically modeled as separable factors. However, we argue that the entire production process is organized around different network structures. Therefore, they are inevitably non-separable from the observed inputs and outputs. The adopted econometric model is a random coefficient stochastic frontier model. We estimate an input distance function for the years 1991 to 2006. The results underline the presence of unobserved non-separable factors.
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Find related papers by JEL classification: D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
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