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Measuring Efficiency of German Bus Public Transport


  • Raimund Scheffler

    () (Institute of Transport Economics, Muenster)

  • Karl-Hans Hartwig

    () (Institute of Transport Economics, Muenster)

  • Robert Malina

    () (Institute of Transport Economics, Muenster)


This paper quantifies the technical efficiency of German bus companies and elaborates on the main factors influencing their performance. Efficiency is measured with a stochastic production frontier. We test for the impact on efficiency of ownership structure and participation at tendering. Furthermore, we investigate the influence on efficiency when a bus company is a part of a multi-product enterprise. The results yield insights how public bus companies might improve their performance in order to cope with the changing market environment. The mean technical efficiency of the investigated bus companies is around 87 percent. Bus companies with participation at tendering show a significantly higher mean efficiency than other companies. The ownership structure has no influence on technical efficiency.

Suggested Citation

  • Raimund Scheffler & Karl-Hans Hartwig & Robert Malina, 2010. "Measuring Efficiency of German Bus Public Transport," Working Papers 14, Institute of Transport Economics, University of Muenster.
  • Handle: RePEc:mut:wpaper:14

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    References listed on IDEAS

    1. DE BORGER, Bruno & KERSTENS, Kristiaan & COSTA, Álvaro, "undated". "Public transit performance: What do we learn from frontier studies?," Working Papers 2000019, University of Antwerp, Faculty of Applied Economics.
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    Cited by:

    1. Avenali, Alessandro & Boitani, Andrea & Catalano, Giuseppe & D’Alfonso, Tiziana & Matteucci, Giorgio, 2016. "Assessing standard costs in local public bus transport: Evidence from Italy," Transport Policy, Elsevier, vol. 52(C), pages 164-174.

    More about this item


    Stochastic Frontier Analysis; Production Function; Public Transport; Efficiency Analysis;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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