Measuring inefficiency in the Norwegian bus industry using multi-directional efficiency analysis

This paper deals with methods of measuring and analyzing efficiency in the transport industry. The aim of the paper is to introduce and demonstrate the advantages of Multi-directional Efficiency Analysis (MEA) in the case of cost data with limited substitution possibilities. For this purpose we reconsider the Norwegian bus data that has previously been analyzed using econometric models and Data Envelopment Analysis; Jørgensenet al. (1995, 1997) and Odeck and Alkadi (2001). It is shown how, using MEA, it becomes possible to disaggregate inefficiency into different components corresponding to different types of cost generating variables and thereby providing both managers of the bus companies and policy makers with more detailed information on possible improvements in performance.

[1]  James Odeck,et al.  Evaluating efficiency in the Norwegian bus industry using data envelopment analysis , 2001 .

[2]  Staffan Hultén,et al.  The Effects of Competition in Swedish Local Bus Services , 1998 .

[3]  Mich Tvede,et al.  Benchmark Selection: An Axiomatic Approach , 2001 .

[4]  Mette Asmild,et al.  Measuring Inefficiency Via Potential Improvements , 2003 .

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

[6]  Kristiaan Kerstens,et al.  Public transit performance: What does one learn from frontier studies? , 2002 .

[7]  Richard A. Johnson,et al.  Applied Multivariate Statistical Analysis , 1983 .

[8]  Pål Andreas Pedersen,et al.  Estimating the inefficiency in the Norwegian bus industry from stochastic cost frontier models , 1997 .

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

[10]  Dag Morten Dalen,et al.  Yardsticks on the road: Regulatory contracts and cost efficiency in the Norwegian bus industry , 2003 .

[11]  Jens Leth Hougaard,et al.  Efficiency Evaluations Based on Potential (Non-Proportional) Improvements , 1999 .

[12]  Gisle Solvoll,et al.  THE COSTS OF BUS OPERATIONS IN NORWAY. , 1995 .

[13]  Jens Leth Hougaard,et al.  Super efficiency evaluations based on potential slack , 2004, Eur. J. Oper. Res..

[14]  Jonathan Cowie,et al.  Organisation form, scale effects and efficiency in the British bus industry , 1999 .

[15]  Ginés de Rus,et al.  PRIVATISATION OF URBAN BUS SERVICES IN SPAIN. , 1997 .

[16]  Rolf Färe,et al.  Production Frontiers: Indirect Input-Based Efficiency Measurement , 1993 .

[17]  A. Charnes,et al.  Data Envelopment Analysis Theory, Methodology and Applications , 1995 .

[18]  Calyampudi R. Rao,et al.  Linear statistical inference and its applications , 1965 .

[19]  C. R. Rao,et al.  Linear Statistical Inference and its Applications , 1968 .