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Sources of productivity change: a Malmquist total factor productivity approach

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  • K. A. BOAME
  • K. OBENG

Abstract

Urban transit systems are faced with declining ridership and increasing deficits in recent years. Improving the productivity of transit systems in such unfavourable operating conditions is unquestionable. The sources of productivity change in bus transit systems in the USA between 1985 and 1997 are investigated by using the non‐parametric Malmquist total factor productivity index. Technical change and efficiency change improved transit productivity. In addition, government subsidy has negative and statistically significant correlations with the efficiency of transit systems, and positive and significant relationships with technical change. No statistically significant correlation was found between subsidies and the Malmquist total factor productivity.

Suggested Citation

  • K. A. Boame & K. Obeng, 2004. "Sources of productivity change: a Malmquist total factor productivity approach," Transport Reviews, Taylor & Francis Journals, vol. 25(1), pages 103-116, March.
    • Handle: RePEc:taf:transr:v:25:y:2004:i:1:p:103-116
    DOI: 10.1080/0144164042000244572
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    References listed on IDEAS

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    1. Harold Barger, 1951. "The Transportation Industries, 1889-1946: A Study of Output, Employment, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number barg51-1.
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    Cited by:

    1. 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".
    2. de Borger, Bruno & Kerstens, Kristiaan & Staat, Matthias, 2008. "Transit costs and cost efficiency: Bootstrapping non-parametric frontiers," Research in Transportation Economics, Elsevier, vol. 23(1), pages 53-64, January.
    3. Venkatesh, Anand & Kushwaha, Shivam, 2018. "Short and long-run cost efficiency in Indian public bus companies using Data Envelopment Analysis," Socio-Economic Planning Sciences, Elsevier, vol. 61(C), pages 29-36.
    4. Obeng, K. & Sakano, R., 2008. "Public transit subsidies, output effect and total factor productivity," Research in Transportation Economics, Elsevier, vol. 23(1), pages 85-98, January.
    5. 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.
    6. Nakatani, Ryota, 2022. "Productivity drivers of infrastructure companies: network industries to maximize economies of scale in the digital era," MPRA Paper 115531, University Library of Munich, Germany.
    7. Anand Venkatesh & Shivam Kushwaha, 2017. "Measuring technical efficiency of passenger bus companies in India: a non-radial data envelopment analysis approach," OPSEARCH, Springer;Operational Research Society of India, vol. 54(4), pages 706-723, December.

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