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A Stepwise-Projection Data Envelopment Analysis for Public Transport Operations in Japan

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  • Soushi Suzuki

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  • Peter Nijkamp

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Abstract

With tightening budgets and increasingly critical reviews of public expenditure, there is a need for a careful analysis of the performance of public bodies in terms of an efficient execution of their tasks. These questions show up everywhere in the public domain, for instance, in the provision of medical facilities, the operation of postal services, or the supply of public transport. A standard tool to judge the efficiency of such agencies is Data Envelopment Analysis (DEA). In the past years, much progress has been made to extend this approach in various directions. Examples are the Distance Friction Minimization (DFM) model and the Context-Dependent (CD) model. The DFM model is based on a generalized distance friction function and serves to improve the performance of a Decision Making Unit (DMU) by identifying the most appropriate movement towards the efficiency frontier surface. Standard DEA models use a uniform proportional input reduction (or a uniform proportional output increase) in the improvement projections, but the DFM approach aims to enhance efficiency strategies by deploying a weighted projection function. This approach may address both input reduction and output increase as a strategy of a DMU. A suitable form of multidimensional projection functions is given by a Multiple Objective Quadratic Programming (MOQP) model using a Euclidean distance. Likewise, the CD model yields efficient frontiers in different levels, while it is based on a level-by-level improvement projection. The present paper will first offer a new integrated DEA tool -merging from a blend of the DFM and CD model using the Charnes-Cooper-Rhodes (CCR) method – in order to design a stepwise efficiency-improving projection model for a conventional DEA. The above-mentioned stepwise-projection model is illustrated on the basis of an application to the efficiency analysis of public transport operations in Japan.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p523.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa10p523

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  1. Seiford, Lawrence M. & Zhu, Joe, 2003. "Context-dependent data envelopment analysis--Measuring attractiveness and progress," Omega, Elsevier, vol. 31(5), pages 397-408, October.
  2. Soushi Suzuki & Peter Nijkamp & Piet Rietveld, 2011. "Regional Efficiency Improvement by Means of Data Envelopment Analysis through Euclidean Distance Minimization including Fixed Input Factors - An Application to Tourist Regions in Italy," Tinbergen Institute Discussion Papers 11-110/3, Tinbergen Institute.
  3. Suzuki, Soushi & Nijkamp, Peter & Rietveld, Piet & Pels, Eric, 2010. "A distance friction minimization approach in data envelopment analysis: A comparative study on airport efficiency," European Journal of Operational Research, Elsevier, vol. 207(2), pages 1104-1115, December.
  4. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
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Cited by:
  1. Soushi Suzuki & Peter Nijkamp, 2011. "A Stepwise Efficiency Improvement DEA Model for Airport Operations with Fixed Production Factors," ERSA conference papers ersa11p1065, European Regional Science Association.
  2. Karima Kourtit & Daniel Arribas-Bel & Peter Nijkamp, 2012. "High performers in complex spatial systems: a self-organizing mapping approach with reference to The Netherlands," The Annals of Regional Science, Springer, vol. 48(2), pages 501-527, April.

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