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Transit Costs and Cost Efficiency: Bootstrapping Non-Parametric Frontiers

Author

Listed:
  • B. de Borger
  • K. Kerstens

    (LEM - Lille - Economie et Management - Université de Lille, Sciences et Technologies - CNRS - Centre National de la Recherche Scientifique)

  • M. Staat

Abstract

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 summarized 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, and (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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • B. de Borger & K. Kerstens & M. Staat, 2008. "Transit Costs and Cost Efficiency: Bootstrapping Non-Parametric Frontiers," Post-Print hal-00384167, HAL.
    • Handle: RePEc:hal:journl:hal-00384167
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    Cited by:

    1. Brida, Juan Gabriel & Deidda, Manuela & Pulina, Manuela, 2014. "Tourism and transport systems in mountain environments: analysis of the economic efficiency of cableways in South Tyrol," Journal of Transport Geography, Elsevier, vol. 36(C), pages 1-11.
    2. Walter Briec & Kristiaan Kerstens & Ignace Van de Woestyne, 2013. "Nonparametric cost and revenue functions under constant economies of scale: An enumeration approach for the single output or input case," Working Papers 2013-ECO-22, IESEG School of Management.
    3. Fallah-Fini, Saeideh & Triantis, Konstantinos & de la Garza, Jesus M. & Seaver, William L., 2012. "Measuring the efficiency of highway maintenance contracting strategies: A bootstrapped non-parametric meta-frontier approach," European Journal of Operational Research, Elsevier, vol. 219(1), pages 134-145.
    4. Cinzia Daraio & Marco Diana & Flavia Di Costa & Claudio Leporelli & Giorgio Matteucci & Alberto Nastasi, 2014. "Efficiency and effectiveness in the urban public transport sector: a critical review with directions for future research," DIAG Technical Reports 2014-14, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    5. Galina Besstremyannaya & Jaak Simm, 2015. "Robust non-parametric estimation of cost efficiency with an application to banking industry," Working Papers w0217, New Economic School (NES).
    6. Briec, Walter & Kerstens, Kristiaan & Van de Woestyne, Ignace, 2011. "Nonparametric cost and revenue functions under constant economies of scale: A simplification for the single output or input case," Working Papers 2011/12, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    7. Matthias Walter, 2011. "Some Determinants of Cost Efficiency in German Public Transport," Journal of Transport Economics and Policy, University of Bath, vol. 45(1), pages 1-20, January.
    8. Nocera Alves Junior, Paulo & Costa Melo, Isotilia & de Moraes Santos, Rodrigo & da Rocha, Fernando Vinícius & Caixeta-Filho, José Vicente, 2022. "How did COVID-19 affect green-fuel supply chain? - A performance analysis of Brazilian ethanol sector," Research in Transportation Economics, Elsevier, vol. 93(C).
    9. Jorge Andrés Perdomo Calvo & Mariana Rubio, 2012. "Regulación económica para la tarifa de parqueaderos en Bogotá mediante precios máximos," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID.
    10. Perdomo Calvo, Jorge Andrés, 2014. "An Economics Approach to Fixing the Fare of the Parking Lot Service in Bogotá Using Price Cap Regulation," MPRA Paper 79614, University Library of Munich, Germany.
    11. Galina Besstremyannaya & Jaak Simm & Sergei Golovan, 2017. "Robust estimation of cost efficiency in non-parametric frontier models," Working Papers w0244, New Economic School (NES).
    12. Daraio, Cinzia & Diana, Marco & Di Costa, Flavia & Leporelli, Claudio & Matteucci, Giorgio & Nastasi, Alberto, 2016. "Efficiency and effectiveness in the urban public transport sector: A critical review with directions for future research," European Journal of Operational Research, Elsevier, vol. 248(1), pages 1-20.
    13. Magnus Söderberg, 2009. "A Broad Performance Benchmark Based On Citizens’ Preferences: The Case Of Swedish Public Transportation," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(4), pages 579-603, December.
    14. Curi, Claudia & Gitto, Simone & Mancuso, Paolo, 2011. "New evidence on the efficiency of Italian airports: A bootstrapped DEA analysis," Socio-Economic Planning Sciences, Elsevier, vol. 45(2), pages 84-93, June.
    15. Georgiadis, Georgios & Politis, Ioannis & Papaioannou, Panagiotis, 2014. "Measuring and improving the efficiency and effectiveness of bus public transport systems," Research in Transportation Economics, Elsevier, vol. 48(C), pages 84-91.

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