Cost Efficiency in Regional Bus Companies: An Application of Alternative Stochastic Frontier Models

By M. Farsi, Massimo Filippini, Michael Kuenzle. Journal of Transport Economics and Policy, 2006

112 citations recorded by the source corpus.

This paper evaluates cost and scale efficiencies of Switzerland's regulated rural bus companies operating in regional networks. The adopted methodology can be used in benchmarking analyses applied to incentive regulation systems. Moreover, the estimations can be used to evaluate the bidding offers for the tendering processes predicted by the ongoing reform policies. Since these companies operate in different regions with various characteristics that are only partially observed, it is crucial for the regulator to distinguish between inefficiency and exogenous heterogeneity that influences the costs. The main focus lies in the ability of models to distinguish inefficiency from the unobserved firm-specific heterogeneity in a network industry. The estimation results are compared and analysed.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/d3238946908de4c61593029c54f1ec6ef7b6301c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Massimo Filippini
2. L. Hunt
3. J. Zorić
4. M. Farsi
5. Manuel Llorca
6. Luis Orea
7. R. B. Swain
8. A. Karimu

In Strategy and Management

1. L. Hunt
2. Massimo Filippini
3. M. Farsi

Citations in the corpus

• US Residential Energy Demand and Energy Efficiency: A Stochastic Demand Frontier Approach (2012, background): “As discussed in Filippini and Hunt (2011) it is expected that the estimated ‘underlying energy efficiency’ is negatively correlated with energy intensity; thus, when comparing across states, it is expected that the level of energy intensity decreases with an increase of the level of energy efficienc”
• Energy Demand and Energy Efficiency in the OECD Countries: A Stochastic Demand Frontier Approach (2011, methodology): “For a successful application of these models in network industries, see Farsi, et al. (2006) and Farsi, et al. (2005).”
• Trajectories of efficiency measurement: A bibliometric analysis of DEA and SFA (2015, unknown): “…/ 40.25 / 15.32) Examining several approaches on data from: The World Health Organization (Greene, 2004) U.S. banking industry (Greene, 2005b; Greene, 2005c) Swiss railway companies (Farsi et al., 2005) Regional bus companies (Farsi et al., 2006) 64 (24.62) 66 (25.38) 93 (35.77) 17 (6.54) 20 (7.69)”