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Transit costs and cost efficiency: Bootstrapping non-parametric frontiers

  • DE BORGER, Bruno
  • KERSTENS, Kristiaan
  • STAAT, Matthias

This paper explores a selection of recently proposed bootstrapping techniques to estimate non-parametric convex (DEA) cost frontiers and efficiency scores for transit firms. Using a sample of Norwegian bus operators, the key results can be summarised as follows: (i) the bias implied by uncorrected cost efficiency measures is numerically important (close to 25%), (ii) the bootstrapped-based test rejects the constant returns to scale hypothesis (iii) explaining patterns of efficiency scores using a two-stage bootstrapping approach detects only one significant covariate, in contrast to earlier results highlighting, e.g., the positive impact of high-powered contract types. Finally, comparing the average inefficiency obtained for the Norwegian data set with an analogous estimate for a smaller French sample illustrates how the estimated differences in average efficiency almost disappear once sample size differences are accounted for.

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Paper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2008012.

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Length: 48 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:ant:wpaper:2008012
Contact details of provider: Postal: Prinsstraat 13, B-2000 Antwerpen
Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/

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