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Public transit performance: What do we learn from frontier studies?

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  • DE BORGER, Bruno
  • KERSTENS, Kristiaan
  • COSTA, Álvaro

Abstract

This article provides a comprehensive survey of the literature on production and cost frontiers for public transit operators, and it evaluates the contributions of frontier analysis to our understanding of the performance of the public transport sector. We first succinctly contrast best practice (or frontier) and average practice specifications of technology. We also review a number of relevant performance indicators and the methods to measure them. Next, the existing frontier studies measuring urban transit performance are systematically summarised and critically assessed. It is shown that the organisation of the market, contract design, the degree and nature of the regulatory regime, and the characteristics of the network being served are all important determinants of inefficiency. However, although the frontier literature has substantially contributed to the knowledge of urban transit technologies and the determinants of performance, it is found that many important issues remain unresolved.

Suggested Citation

  • 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 Business and Economics.
    • Handle: RePEc:ant:wpaper:2000019
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    Cited by:

    1. K Kerstens & I Van de Woestyne, 2011. "Negative data in DEA: a simple proportional distance function approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(7), pages 1413-1419, July.
    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. 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.
    4. Astrid Cullman & Mehdi Farsi & Massimo Filippini, 2009. "Unobserved Heterogeneity and International Benchmarking in Public Transport," CEPE Working paper series 09-65, CEPE Center for Energy Policy and Economics, ETH Zurich.
    5. Beniamina Margari & Fabrizio Erbetta & Carmelo Petraglia & Massimiliano Piacenza, 2007. "Regulatory and environmental effects on public transit efficiency: a mixed DEA-SFA approach," Journal of Regulatory Economics, Springer, vol. 32(2), pages 131-151, October.
    6. Axel Gautier & Anne Yvrande-Billon, 2013. "Contract Renewal as an Incentive Device. An Application to the French Urban Public Transport Sector," Review of Economics and Institutions, Università di Perugia, vol. 4(1).
    7. Julien Lévêque & William Roy, 2004. "Quelles avancées permettent les techniques de frontière dans la mesure de l'efficience des exploitants de transport urbain ?," Post-Print halshs-00091900, HAL.
    8. Dag Dalen & Andres Gómez-Lobo, 2003. "Yardsticks on the road: Regulatory contracts and cost efficiency in the Norwegian bus industry," Transportation, Springer, vol. 30(4), pages 371-386, November.
    9. Christian von Hirschhausen & Astrid Cullmann, 2008. "Next Stop: Restructuring?: A Nonparametric Efficiency Analysis of German Public Transport Companies," Discussion Papers of DIW Berlin 831, DIW Berlin, German Institute for Economic Research.
    10. Maria Nieswand & Matthias Walter, 2010. "Cost Efficiency and Subsidization in German Local Public Bus Transit," Discussion Papers of DIW Berlin 1071, DIW Berlin, German Institute for Economic Research.
    11. William Roy & Anne Yvrande-Billon, 2007. "Ownership, Contractual Practices and Technical Efficiency: The Case of Urban Public Transport in France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00107375, HAL.
    12. K. Obeng, 2011. "Indirect production function and the output effect of public transit subsidies," Transportation, Springer, vol. 38(2), pages 191-214, March.
    13. Matthias Walter & Astrid Cullmann, 2008. "Potential Gains from Mergers in Local Public Transport: An Efficiency Analysis Applied to Germany," Discussion Papers of DIW Berlin 832, DIW Berlin, German Institute for Economic Research.
    14. Karl-Hans Hartwig & Raimund Scheffler, 2009. "Größenvorteile im deutschen ÖSPV – Eine empirische Analyse," Working Papers 13, Institute of Transport Economics, University of Muenster.

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