Technical efficiency in multi-mode bus transit: A production frontier analysis

Philip A. Viton

Transportation Research Part B: Methodological, 1997, vol. 31, issue 1, 23-39

Abstract: This paper studies the efficiency of U.S. multi-mode bus transit systems by asking whether they could expand their service (outputs) without requiring additional resources (inputs); or whether they could reduce input utilization without having to reduce service. A system which can do neither is said to be "technically efficient". The technological possibilities facing the industry are identified by computing a piecewise-linear best-practice production frontier exhibiting variable returns to scale and weak disposal. The findings indicate that 80% of the bus systems studied are technically efficient, and that the extent of inefficiency in the industry is slight.

Date: 1997
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