Sources of productivity change: a Malmquist total factor productivity approach

K. A. Boame and Kofi Obeng

Transport Reviews, 2004, vol. 25, issue 1, 103-116

Abstract: Urban transit systems are faced with declining ridership and increasing deficits in recent years. Improving the productivity of transit systems in such unfavourable operating conditions is unquestionable. The sources of productivity change in bus transit systems in the USA between 1985 and 1997 are investigated by using the non‐parametric Malmquist total factor productivity index. Technical change and efficiency change improved transit productivity. In addition, government subsidy has negative and statistically significant correlations with the efficiency of transit systems, and positive and significant relationships with technical change. No statistically significant correlation was found between subsidies and the Malmquist total factor productivity.

Date: 2004
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DOI: 10.1080/0144164042000244572

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