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A stepwise-projection data envelopment analysis for public transport operations in Japan

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  • Soushi Suzuki
  • Peter Nijkamp

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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Suggested Citation

  • Soushi Suzuki & Peter Nijkamp, 2011. "A stepwise-projection data envelopment analysis for public transport operations in Japan," Letters in Spatial and Resource Sciences, Springer, vol. 4(2), pages 139-156, July.
    • Handle: RePEc:spr:lsprsc:v:4:y:2011:i:2:p:139-156
    DOI: 10.1007/s12076-011-0058-8
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    1. 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," Papers in Regional Science, Wiley Blackwell, vol. 90(1), pages 67-89, March.
    2. 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.
    3. Seiford, Lawrence M. & Zhu, Joe, 2003. "Context-dependent data envelopment analysis--Measuring attractiveness and progress," Omega, Elsevier, vol. 31(5), pages 397-408, October.
    4. 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.
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    Cited by:

    1. Karima Kourtit & Daniel Arribas-Bel & Peter Nijkamp, 2013. "High Performance in Complex Spatial Systems: A Self-Organizing Mapping Approach with Reference to The Netherlands," Tinbergen Institute Discussion Papers 13-194/VIII, Tinbergen Institute.
    2. Suzuki, Soushi & Nijkamp, Peter, 2016. "An evaluation of energy-environment-economic efficiency for EU, APEC and ASEAN countries: Design of a Target-Oriented DFM model with fixed factors in Data Envelopment Analysis," Energy Policy, Elsevier, vol. 88(C), pages 100-112.
    3. Sarmento, Joaquim Miranda & Renneboog, Luc & Verga-Matos, Pedro, 2017. "Measuring highway efficiency : A DEA approach and the Malquist index," Other publications TiSEM 23264815-321e-45a3-83ee-9, Tilburg University, School of Economics and Management.
    4. Lozano, Sebastián & Calzada-Infante, Laura, 2018. "Computing gradient-based stepwise benchmarking paths," Omega, Elsevier, vol. 81(C), pages 195-207.
    5. Wanyu Yang & Xuebing Ouyang & Tiezhu Li, 2023. "Research on the Regional Transport Development Index and Its Application in Decision Making and Sustainable Development of Transport Services: A Case Study in Yunnan Province, China," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    6. Karima Kourtit & Peter Nijkamp, 2013. "In Search of Creative Champions in High-Tech Spaces," Tinbergen Institute Discussion Papers 13-193/VIII, Tinbergen Institute.
    7. Kadziński, Miłosz & Stamenković, Mladen & Uniejewski, Maciej, 2022. "Stepwise benchmarking for multiple criteria sorting," Omega, Elsevier, vol. 108(C).
    8. Kourtit Karima & Nijkamp Peter & Suzuki Soushi, 2016. "New Urban Economic Agents: A Comparative Analysis of High-Performance New Entrepreneurs," Quaestiones Geographicae, Sciendo, vol. 35(4), pages 5-22, December.
    9. 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;Western Regional Science Association, vol. 48(2), pages 501-527, April.
    10. Żółtaszek Agata & Pisarek Renata, 2016. "Effectiveness of National Airlines in Europe – the DEA Approach," Folia Oeconomica Stetinensia, Sciendo, vol. 16(2), pages 103-118, December.
    11. 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.
    12. Liu, Junqing & Fukushige, Mototsugu, 2020. "Efficiency and pricing of water supply and sewerage services in Japan," Utilities Policy, Elsevier, vol. 62(C).
    13. Karima Kourtit & Peter Nijkamp, 2013. "In Search Of Creative Champions In High-Tech Spaces: A Spatial Application Of Strategic Performance Management," Journal of Regional Science, Wiley Blackwell, vol. 53(5), pages 749-777, December.
    14. Jaehun Park & Si-Il Sung, 2016. "Integrated Approach to Construction of Benchmarking Network in DEA-Based Stepwise Benchmark Target Selection," Sustainability, MDPI, vol. 8(7), pages 1-15, June.

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    More about this item

    Keywords

    Data Envelopment Analysis (DEA); Stepwise projection; Distance friction minimization; Context-dependence; Public transport operations; R40; C44;
    All these keywords.

    JEL classification:

    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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