Unobserved Heterogeneity and International Benchmarking in Public Trasport

Astrid Cullmann, Mehdi Farsi and Massimo Filippini

Quaderni della facoltà di Scienze economiche dell'Università di Lugano from USI Università della Svizzera italiana

Abstract: We analyze the technical efficiency of German and Swiss urban public transport companies by means of SFA. In transport networks we might face different network structures or complexities, not observed, but influencing the production process. The unobserved factors are typically modeled as separable factors. However, we argue that the entire production process is organized around different network structures. Therefore, they are inevitably non-separable from the observed inputs and outputs. The adopted econometric model is a random coefficient stochastic frontier model. We estimate an input distance function for the years 1991 to 2006. The results underline the presence of unobserved non-separable factors.

Keywords: distance function; unobserved heterogeneity; technical efficiency; bus industry; panel data (search for similar items in EconPapers)
JEL-codes: D24 L43 L92 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2009-07
New Economics Papers: this item is included in nep-eff and nep-ure
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http://doc.rero.ch/lm.php?url=1000,42,6,20090729100505-HE/wp0904.pdf (application/pdf)

Related works:
Working Paper: Unobserved Heterogeneity and International Benchmarking in Public Transport (2010)
Working Paper: Unobserved Heterogeneity and International Benchmarking in Public Transport (2009)
Working Paper: Unobserved Heterogeneity and International Benchmarking in Public Transport (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:lug:wpaper:0904

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