Transit Costs and Cost Efficiency: Bootstrapping Nonparametric Frontiers

Bruno De Borger, Kristiaan Kerstens and Matthias Staat
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Matthias Staat: DSC GmbH, Schriesheim, Germany

No 2008-ECO-08, Working Papers from IESEG School of Management

Abstract: This paper explores a selection of recently proposed bootstrapping techniques to estimate non-parametric convex (DEA) cost frontiers and efficiency scores for transit firms. Using a sample of Norwegian bus operators, the key results can be summarised as follows: (i) the bias implied by uncorrected cost efficiency measures is numerically important (close to 25%), (ii) the bootstrapped-based test rejects the constant returns to scale hypothesis (iii) explaining patterns of efficiency scores using a two-stage bootstrapping approach detects only one significant covariate, in contrast to earlier results highlighting, e.g., the positive impact of high-powered contract types. Finally, comparing the average inefficiency obtained for the Norwegian data set with an analogous estimate for a smaller French sample illustrates how the estimated differences in average efficiency almost disappear once sample size differences are accounted for.

Pages: 46 pages
Date: 2008-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Published in Research in Transportation Economics, 23(1), pp. 53-64

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Related works:
Journal Article: Transit costs and cost efficiency: Bootstrapping non-parametric frontiers (2008)
Working Paper: Transit costs and cost efficiency: Bootstrapping non-parametric frontiers (2008)
Working Paper: Transit Costs and Cost Efficiency: Bootstrapping Non-Parametric Frontiers (2008)
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