Radial and nonradial static efficiency decompositions: A focus on congestion measurement

We summarize and extend the existing frontier literature by outlining proper ways of decomposing efficiency using both radial and nonradial efficiency measures when using nonparametric, deterministic frontier models. Our contribution relates to a recent paper of Viton (Transportation Research-B 31, 23-39, 1997) analysing the efficiency of U.S. multi-mode bus transit systems. In particular, the author evaluates the technical efficiency, congestion and scale properties of these companies. Due to a methodological mistake he could not detect congestion in his sample. Our proposals remedy this problem and focus on the underexplored issue of proper congestion measurement in general and in transport in particular.

[1]  K. Zieschang.  An extended farrell technical efficiency measure , 1984 .

[2]  R. Färe,et al.  The Structure of Technical Efficiency , 1983 .

[3]  W G Waters,et al.  A SURVEY OF RECENT DEVELOPMENTS IN TRANSPORTATION COST FUNCTION RESEARCH , 1996 .

[4]  Paul W. Wilson,et al.  The highway speed-volume relationship revisited , 1991 .

[5]  K. Kerstens,et al.  Radial and nonradial measures of technical efficiency: An empirical illustration for Belgian local governments using an FDH reference technology , 1996 .

[6]  Rolf Färe,et al.  Measuring the Technical Efficiency of Multiple Output Production Technologies , 1983 .

[7]  Philip A. Viton,et al.  Consolidations of scale and scope in urban transit , 1992 .

[8]  Philip A. Viton,et al.  THE QUESTION OF EFFICIENCY IN URBAN BUS TRANSPORTATION , 1986 .

[9]  Frank A. Haight,et al.  Mathematical Theories of Traffic Flow , 2012 .

[10]  Kristiaan Kerstens,et al.  Technical Efficiency Measures on DEA and FDH: A Reconsideration of the Axiomatic Literature , 1995 .

[11]  Philip A. Viton,et al.  TECHNICAL EFFICIENCY IN MULTI-MODE BUS TRANSIT: A PRODUCTION FRONTIER ANALYSIS , 1997 .

[12]  J. McDonald,et al.  A problem with the decomposition of technical inefficiency into scale and congestion components , 1996 .

[13]  Rolf Färe,et al.  Surface mining of coal: efficiency of US interior mines , 1987 .

[14]  Adolf D. May,et al.  Traffic Flow Fundamentals , 1989 .

[15]  Rolf Färe,et al.  The Effect of Unions on Productivity: U.S. Surface Mining of Coal , 1988 .

[16]  Rolf Färe,et al.  Measuring the technical efficiency of production , 1978 .

[17]  J. Berechman.  Public transit economics and deregulation policy , 1993 .

[18]  Isabelle Piot-Lepetit,et al.  Agriculture's environmental externalities: DEA evidence for French agriculture , 1997 .

[19]  Rolf Färe,et al.  Efficiency and the production function , 1975 .

[20]  Gary D. Ferrier,et al.  Radial and Nonradial Technical Efficiency Measures on a DEA Reference Technology: A Comparison Using US Banking Data , 1994, Recherches économiques de Louvain.

[21]  Steven C. Deller,et al.  Measuring the Economic Efficiency of Producing Rural Road Services , 1991 .

[22]  C. E. Ferguson.  The Neoclassical Theory of Production and Distribution , 1969 .

[23]  Bruce W. Lamar,et al.  MEASURING TRANSIT PERFORMANCE USING DATA ENVELOPMENT ANALYSIS , 1992 .

[24]  Massimo Filippini,et al.  Cost Structure and efficiency of Local Public Transport: The case of Emilia Romagna bus companies , 1993 .

[25]  M. Farrell.  The Measurement of Productive Efficiency , 1957 .

[26]  K. Obeng,et al.  RE-EXAMINATION OF INEFFICIENCIES IN URBAN TRANSIT SYSTEMS: A STOCHASTIC FRONTIER APPROACH , 1995 .

[27]  R. Färe,et al.  The measurement of efficiency of production , 1985 .

[28]  Rolf Färe,et al.  The effect of environmental regulations on the efficiency of electric utilities: 1969 versus 1975 , 1989 .

[29]  William W. Cooper,et al.  Chapter 1 Introduction: Extensions and new developments in DEA , 1996, Ann. Oper. Res..

[30]  Subhash C. Ray,et al.  Cost efficiency in the US steel industry: A nonparametric analysis using data envelopment analysis , 1995 .

[31]  Maurice Marchand,et al.  Shadow pricing of labour and capital in an economy with unemployed labour , 1984 .