Decomposing Technical Efficiency and Effectiveness of French Urban Transport

Kristiaan Kerstens

Annals of Economics and Statistics, 1999, issue 54, 129-155

Abstract: This article determines the sources of observed technically inefficient behaviour among French urban transit companies using non-parametric deterministic frontier specifications of technology. Decomposing overall technical efficiency yields component-wise efficiency measures reflecting scale, structural and technical inefficiencies. Also the effectiveness of urban transit is evaluated in a similar way. Moreover, the analysis investigates the effect of the selected orientation of measurement. Finally, it is the first study to control for the effect of outliers on the decomposition results. The empirical results indicate that technical inefficiency is the major source of poor performance, followed by inefficiencies due to inadequacies in scale. Congestion only plays a minor role. The findings also lead us to add some critical notes to this decomposition methodology.

Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:1999:i:54:p:129-155

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