Journal article

Unobserved heterogeneity and efficiency measurement in public transport

  • Cullmann, Astrid DIW Berlin (German Institute for Economic Research), Department of Innovation, Manufacturing, Service, Berlin, Germany
  • Farsi, Mehdi Istituto microeconomia e economia pubblica (MecoP), Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera
  • Filippini, Massimo Istituto microeconomia e economia pubblica (MecoP), Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera
    2010
Published in:
  • Journal of transport economics and policy. - University of Bath. - 2012, vol. 46, no. 1, p. 51-66
English Efficiency measurement in public transport requires an adequate account of unobserved network characteristics that are typically modelled as factors separable from the production process. This paper proposes a panel data model that allows for non-separable firm-specific heterogeneity in an input distance function. The proposed model is applied to a sample of German and Swiss urban transit companies operating from 1991 to 2006. The results underline the presence of non-separable unobserved factors and their effects on technological characteristics such as returns to scale. Moreover, the data suggest that the effect of time-invariant heterogeneity could be significantly greater than technical inefficiency.
Language
  • English
Classification
Economics
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  • RERO DOC 28593
  • ARK ark:/12658/srd1318346
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https://n2t.net/ark:/12658/srd1318346
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