Ownership and competition and their effect on public transit system efficiency is a topic of considerable interest. In this article, we use a stochastic frontier error component model specification that incorporates a dynamic ARCH error structure to assess the effects of ownership and competition on European public transport systems using data from 15 European systems for a 10-year time period (1990–2000). Results indicate: (i) a clear rejection of the standard frontier model and existence of ARCH-related heteroskedastic technical inefficiency; (ii) transport operators in cities where competition has been introduced to demonstrate increased efficiency and (iii) efficiency findings vary between different error formulations.


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    Title :

    Ownership and competition in European transit: assessing efficiency


    Contributors:

    Published in:

    Transportmetrica ; 6 , 2 ; 143-160


    Publication date :

    2010-04-01




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    Unknown




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