IDEAS home Printed from https://ideas.repec.org/a/tpe/jtecpo/v40y2006i3p383-408.html
   My bibliography  Save this article

Performance Measurement for Railway Transport: Stochastic Distance Functions with Inefficiency and Ineffectiveness Effects

Author

Listed:
  • Lawrence W. Lan
  • Erwin T. J. Lin

Abstract

To scrutinise the plausible sources of poor performance for non-storable transport services, it is necessary to distinguish technical inefficiency from service ineffectiveness. This paper attempts to measure the performance of railways that produce passenger and freight services by two stochastic distance function approaches. A stochastic input distance function with an inefficiency effect is defined to evaluate technical efficiency; whereas a stochastic consumption distance function with an ineffectiveness effect is introduced to assess service effectiveness. The empirical analysis examines 39 worldwide railway systems over eight years (1995-2002) where inputs contain number of passenger cars, number of freight cars, and number of employees, while outputs contain passenger train-kilometres and freight train-kilometres, and consumptions contain passenger-kilometres and ton-kilometres. The findings show that railways' technical inefficiency and service ineffectiveness are negatively influenced by gross national income per capita, percentage of electrified lines, and line density. Overall, the railways in West Europe perform more efficiently and effectively than those in East Europe and Non-European regions. Strategies for ameliorating the operation of less-efficient and/or less-effective railways are proposed. © 2006 LSE and the University of Bath

Suggested Citation

  • Lawrence W. Lan & Erwin T. J. Lin, 2006. "Performance Measurement for Railway Transport: Stochastic Distance Functions with Inefficiency and Ineffectiveness Effects," Journal of Transport Economics and Policy, University of Bath, vol. 40(3), pages 383-408, September.
  • Handle: RePEc:tpe:jtecpo:v:40:y:2006:i:3:p:383-408
    as

    Download full text from publisher

    File URL: http://www.catchword.com/cgi-bin/cgi?ini=bc&body=linker&reqidx=0022-5258(20060901)40:3L.383;1-
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu, Ming-Miin & Lin, Erwin T.J., 2008. "Efficiency and effectiveness in railway performance using a multi-activity network DEA model," Omega, Elsevier, vol. 36(6), pages 1005-1017, December.
    2. Fumitoshi Mizutani & Shuji Uranishi, 2013. "Does vertical separation reduce cost? An empirical analysis of the rail industry in European and East Asian OECD Countries," Journal of Regulatory Economics, Springer, vol. 43(1), pages 31-59, January.
    3. Aziz Kutlar & Ali Kabasakal & Murat Sarikaya, 2013. "Determination of the efficiency of the world railway companies by method of DEA and comparison of their efficiency by Tobit analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(6), pages 3575-3602, October.
    4. repec:eee:ejores:v:268:y:2018:i:1:p:255-267 is not listed on IDEAS
    5. Ali Kabasakal & Aziz Kutlar & Murat Sarikaya, 2015. "Efficiency determinations of the worldwide railway companies via DEA and contributions of the outputs to the efficiency and TFP by panel regression," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(1), pages 69-88, March.
    6. Tavassoli, Mohammad & Faramarzi, Gholam Reza & Farzipoor Saen, Reza, 2014. "Efficiency and effectiveness in airline performance using a SBM-NDEA model in the presence of shared input," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 146-153.
    7. Hooper, Louise, 2008. "Paying for performance: Uncertainty, asymmetric information and the payment model," Research in Transportation Economics, Elsevier, vol. 22(1), pages 157-163, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:40:y:2006:i:3:p:383-408. 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: (Christopher F. Baum). General contact details of provider: http://www.bath.ac.uk/e-journals/jtep .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.