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Do contractual practices affect technical efficiency? Evidence from public transport operators in China

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  • Zhang, Chunqin
  • Juan, Zhicai
  • Xiao, Guangnian

Abstract

This paper presents a discussion on the causal effect of contractual practices on the technical efficiency of Chinese public transport operators. To test this proposition, an original panel data set covering 47 operators over the period 2008–2013 is used, we firstly estimate the technical efficiency based on the stochastic frontier approach in a time-varying form of the trans-log production function, and then consider a propensity score matching approach to assess the causal effect between them. The econometric results corroborate this proposition that gross cost contracts offer more incentives to technical efficiency than net cost contracts and management contracts.

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  • Zhang, Chunqin & Juan, Zhicai & Xiao, Guangnian, 2015. "Do contractual practices affect technical efficiency? Evidence from public transport operators in China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 39-55.
  • Handle: RePEc:eee:transe:v:80:y:2015:i:c:p:39-55
    DOI: 10.1016/j.tre.2015.05.001
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    2. Hirschhorn, Fabio & Veeneman, Wijnand & van de Velde, Didier, 2018. "Inventory and rating of performance indicators and organisational features in metropolitan public transport: A worldwide Delphi survey," Research in Transportation Economics, Elsevier, vol. 69(C), pages 144-156.
    3. Zhang, Chunqin & Juan, Zhicai & Luo, Qingyu & Xiao, Guangnian, 2016. "Performance evaluation of public transit systems using a combined evaluation method," Transport Policy, Elsevier, vol. 45(C), pages 156-167.
    4. Obeng, K., 2019. "Public transit cost efficiency studies: The impact of non-contracting regulations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 247-258.
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    8. Zhang, Chunqin & Xiao, Guangnian & Liu, Yong & Yu, Feng, 2018. "The relationship between organizational forms and the comprehensive effectiveness for public transport services in China?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 783-802.

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