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Understanding overall output efficiency in public transit systems: The roles of input regulations, perceived budget and input subsidies

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  • Obeng, K.
  • Sakano, R.
  • Naanwaab, C.

Abstract

This paper examines the combined effects of subsidies, regulations and perceived budget on overall output and technical efficiency in a sample of single-mode bus transit systems using an indirect production function. The main findings are that the average transit system is 67.21% output efficient and systematic and stochastic technical inefficiencies decrease output. In addition subsidies increase output, regulations decrease output and the overall budget effect is an increase in output. Additionally, it identifies the characteristics of two groups of transit systems whose perceived costs after subsidies and regulations are either less or greater than actual total costs.

Suggested Citation

  • Obeng, K. & Sakano, R. & Naanwaab, C., 2016. "Understanding overall output efficiency in public transit systems: The roles of input regulations, perceived budget and input subsidies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 133-150.
    • Handle: RePEc:eee:transe:v:89:y:2016:i:c:p:133-150
    DOI: 10.1016/j.tre.2016.03.001
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    Cited by:

    1. Obeng, K. & Sakano, R., 2020. "Effects of government regulations and input subsidies on cost efficiency: A decomposition approach," Transport Policy, Elsevier, vol. 91(C), pages 95-107.
    2. Chen, Jingxu & Liu, Zhiyuan & Wang, Shuaian & Chen, Xuewu, 2018. "Continuum approximation modeling of transit network design considering local route service and short-turn strategy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 165-188.
    3. Merkert, Rico & Mulley, Corinne & Hakim, Md Mahbubul, 2017. "Determinants of bus rapid transit (BRT) system revenue and effectiveness – A global benchmarking exercise," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 75-88.
    4. Zhang, Chunqin & Xiao, Guangnian & Liu, Yong & Yu, Feng, 2018. "The relationship between organizational forms and the comprehensive effectiveness for public transport services in China?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 783-802.
    5. Obeng, K., 2019. "Public transit cost efficiency studies: The impact of non-contracting regulations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 247-258.
    6. Yu, Le & Xie, Binglei & Chan, Edwin H.W., 2019. "Exploring impacts of the built environment on transit travel: Distance, time and mode choice, for urban villages in Shenzhen, China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 132(C), pages 57-71.

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    More about this item

    Keywords

    Operating and capital subsidies; Transit regulations; Budget size; Overall productive efficiency; Efficiency decomposition;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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