Understanding overall output efficiency in public transit systems: The roles of input regulations, perceived budget and input subsidies

Kofi Obeng, R. Sakano and Cephas Naanwaab

Transportation Research Part E: Logistics and Transportation Review, 2016, vol. 89, issue C, 133-150

Abstract: This paper examines the combined effects of subsidies, regulations and perceived budget on overall output and technical efficiency in a sample of single-mode bus transit systems using an indirect production function. The main findings are that the average transit system is 67.21% output efficient and systematic and stochastic technical inefficiencies decrease output. In addition subsidies increase output, regulations decrease output and the overall budget effect is an increase in output. Additionally, it identifies the characteristics of two groups of transit systems whose perceived costs after subsidies and regulations are either less or greater than actual total costs.

Keywords: Operating and capital subsidies; Transit regulations; Budget size; Overall productive efficiency; Efficiency decomposition (search for similar items in EconPapers)
JEL-codes: H21 H25 R48 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:89:y:2016:i:c:p:133-150

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DOI: 10.1016/j.tre.2016.03.001

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