The efficiency of Norwegian road toll companies
This paper analyses the level of efficiency at which road toll companies are operated in Norway. Two alternative methods are applied for this purpose: data envelopment analysis (DEA) and stochastic frontier analysis (SFA). The data comprise a total of 20 toll companies that have been in operation in the period 2003–2008. The findings of the paper are as follows: 1) There is a great potential for efficiency improvement in the sector, irrespective of the method used, but the variation in the efficiency scores is dependent on the method used; 2) there is no evidence of economies of scale, as has been found by other authors, such as Odeck 2008, How efficient and productive are road toll companies? Evidence from Norway, Transport Policy. 15, 232–241 and, Amdal, E., Bårdsen, G., Johansen K. and Welde M., 2007. Operating costs in Norwegian toll companies: a panel data analysis. Transportation. 34, 681–695. These results suggest that toll companies could generate significant savings by employing industry best practices. Further, decision makers are warned not to be indifferent to the approach used i.e., DEA and SFA, as these may give very different results.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Rees, Ray, 1985. "The Theory of Principal and Agent: Part 2," Bulletin of Economic Research, Wiley Blackwell, vol. 37(2), pages 75-95, May.
- Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
- Coelli, T. J., 1995.
"Recent Developments in Frontier Modelling and Efficiency Measurement,"
1995 Conference (39th), February 14-16, 1995, Perth, Australia
148798, Australian Agricultural and Resource Economics Society.
- Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), December.
- Tim J. Coelli, 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
- Rees, Ray, 1985. "The Theory of Principal and Agent: Part 1," Bulletin of Economic Research, Wiley Blackwell, vol. 37(1), pages 3-26, January.
- Luigi Benfratello & Alberto Iozzi & Paola Valbonesi, 2009. "Technology and incentive regulation in the Italian motorways industry," Journal of Regulatory Economics, Springer, vol. 35(2), pages 201-221, April.
- John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, March.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
- Odeck, James, 2008. "How efficient and productive are road toll companies?: Evidence from Norway," Transport Policy, Elsevier, vol. 15(4), pages 232-241, July.
- Odeck, James & Bråthen, Svein, 2002. "Toll financing in Norway: The success, the failures and perspectives for the future," Transport Policy, Elsevier, vol. 9(3), pages 253-260, July.
- James Odeck, 2008. "Efficiency Measurement of Ferries Serving Road Networks in Norway: A Stochastic Frontier Approach," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 10(4), pages 409-428, December.
- Gunnar Bårdsen & Erik Amdal & Kåre Johansen & Morten Welde, 2006.
"Operating costs in Norwegian toll companies: A panel data analysis,"
Working Paper Series
6906, Department of Economics, Norwegian University of Science and Technology.
- Erik Amdal & Gunnar Bårdsen & Kåre Johansen & Morten Welde, 2007. "Operating costs in Norwegian toll companies: a panel data analysis," Transportation, Springer, vol. 34(6), pages 681-695, November.
- Jean-Luc Migué & Gérard Bélanger & William Niskanen, 1974. "Toward a general theory of managerial discretion," Public Choice, Springer, vol. 17(1), pages 27-47, March.
- John Ruggiero & Donald F. Vitaliano, 1999. "Assessing The Efficiency Of Public Schools Using Data Envelopment Analysis And Frontier Regression," Contemporary Economic Policy, Western Economic Association International, vol. 17(3), pages 321-331, 07.
- 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.
- Eliasson, Jonas, 2009. "A cost-benefit analysis of the Stockholm congestion charging system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 468-480, May.
- Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
- Odeck, James & Bråthen, Svein, 2008. "Travel demand elasticities and users attitudes: A case study of Norwegian toll projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 77-94, January.
When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:19:y:2011:i:3:p:162-171. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.