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The efficiency of public transport operations – An evaluation using stochastic frontier analysis

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  • Holmgren, Johan

Abstract

The aim of this study is to evaluate the efficiency of public transport operations undertaken in Swedish counties by the Public Transport Authorities (PTA), taking into account the substantial differences in operating conditions between counties. The analysis will be performed using Stochastic Frontier Analysis (SFA) with annual data from 1986 to 2009 for 26 Swedish counties. The analysis shows how the efficiency of the individual counties has changed over time. The results are used to provide a ranking (in terms of efficiency) of the Swedish public transport authorities that can provide a basis for benchmarking. It is concluded that the efficiency of the public transport providers in all counties fell during the observed time period. Defining cost efficiency as the ratio of minimum cost to observed cost, the overall (average) cost efficiency for the industry fell from 85.7% in the eighties to 60.4% for the period from 2000 to 2009. Possible explanations for the development include increased emphasis on route density as well as higher environmental and safety requirements.

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  • Holmgren, Johan, 2013. "The efficiency of public transport operations – An evaluation using stochastic frontier analysis," Research in Transportation Economics, Elsevier, vol. 39(1), pages 50-57.
    • Handle: RePEc:eee:retrec:v:39:y:2013:i:1:p:50-57
    DOI: 10.1016/j.retrec.2012.05.023
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    17. van Engelen, Matti & Cats, Oded & Post, Henk & Aardal, Karen, 2018. "Enhancing flexible transport services with demand-anticipatory insertion heuristics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 110(C), pages 110-121.
    18. Mouwen, Arnoud & van Ommeren, Jos, 2016. "The effect of contract renewal and competitive tendering on public transport costs, subsidies and ridership," Transportation Research Part A: Policy and Practice, Elsevier, vol. 87(C), pages 78-89.
    19. Nassereddine, M. & Eskandari, H., 2017. "An integrated MCDM approach to evaluate public transportation systems in Tehran," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 427-439.
    20. Vigren, Andreas, 2014. "Costs for Swedish public transport authorities in tendered bus contracts," Working papers in Transport Economics 2014:22, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

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