Abstract
This paper assesses the impact of regulatory and environmental factors and statistical noise on the efficiency of public transit systems within a DEA-based framework. Using a panel of Italian companies, we implement a DEA-SFA mixed approach based on [H.O. Fried et al. (2002) Journal of Productivity Analysis, 17(1–2), 157–174] to decompose DEA inefficiency measures into three components: exogenous effects, managerial inefficiency and stochastic events. Besides providing evidence on the determinants of input-specific efficiency differentials across companies, the results point out that managerial skills play a minor role, and emphasize the relevance of regulatory policies aimed at replacing cost-plus subsidization with high-powered incentive contracts as well as improving environmental conditions of public transit networks.
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Margari, B.B., Erbetta, F., Petraglia, C. et al. Regulatory and environmental effects on public transit efficiency: a mixed DEA-SFA approach. J Regul Econ 32, 131–151 (2007). https://doi.org/10.1007/s11149-007-9025-0
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DOI: https://doi.org/10.1007/s11149-007-9025-0