Adopted Approach To Measure Efficiency Economics Essay

Posted on

The conveyance sector plays a important function in accomplishing the aims and picks for the development of states, in the support it provides to exporters and other productive sectors and the strengthening of their fight every bit good as the mobility of citizens and socio-economic integrating of all parts of a state.

Public conveyance by coach is the pillar of the transit system in an economic system ( Agarwal et al. 2011 ) . Although manners of travel in most developed states are progressively dependent on the auto ( see Banister and Berechman 2000 ) , doing a downward tendency in demand for conveyance in most industrial economic systems, public conveyance by coach remains an of import manner of transit. Public conveyance services by coach are provided by public, private or assorted corporations in a extremely regulated environment. In add-on, of import components of the conveyance substructure are basically ( semi- ) public goods. Therefore, there are economic grounds for a important grade of province intercession in this country, chiefly based on the acknowledgment of a assortment of market failures ( e.g. , Kerstens 1996 ) . Over the last two decennaries, serious concerns about possible regulative failures have resulted in a reappraisal of the function of authorities in forming this sector ( Glaister et al. 1990 ) . Therefore, it is of import to measure the public presentation or efficiency of public conveyance operators.

This doctorial thesis nowadayss essays in economic sciences of transit. It aims to measure the public conveyance sector efficiency and particularly to place the beginnings of public conveyance operators inefficiency. The public conveyance sector efficiency is good studied in the literature of conveyance. Most of these surveies have seldom investigated the inefficiency determiners of public conveyance operators. Even the work that has studied the inefficiency determiners, they have shown that it is related to exogenic factors outside the house control ( De Borger et al. , 2002 and Jarboui et al. , 2012 ) . Harmonizing to my cognition, this survey is the first essay to explicate the public conveyance operators ‘ inefficiency by endogenous variables under the control of the company ( Jarboui et al. , 2012 ) .

The problematic of our thesis is “ What are the determiners of public conveyance operators ‘ inefficiency? ” This means that our purpose is to through empirical observation show how public conveyance operators can better the efficiency of their production. In other tem, what are the variables that affect the public conveyance operators ‘ efficiency or inefficiency?

This pick is extremely motivated by the survey of De Borger et Al. ( 2002 ) . This survey provides an overview of frontier surveies in the public conveyance sector and provides an overview of methods used to mensurate the public conveyance operators efficiency. Borger et Al. ( 2002 ) affirm that the market organisation, the ordinance grade and nature, the population, the web features… are all the inefficiency determiners of public conveyance. Furthermore, this pick is motivated by the documents Battese and Coelli ( 1995, 1996 ) , they have proposed a parametric attack consists to gauge the stochastic production frontier of panel informations.

In order to decide this debatable, we propose four chapters. The first one takes a signifier of study paper that summarizes the earlier surveies on the public conveyance sector efficiency and particularly the production frontier surveies. This chapter besides proposes future waies of research generated after a comprehensive literature reappraisal. In fact, these future waies will be developed here. The 2nd chapter constitutes our first essay. It initiates two original essays on the rating of public conveyance sector efficiency. The first one aims to mensurate the efficiency of 54 public conveyance operators in 18 states during 2000-2011. We will utilize in this survey a parametric attack ( stochastic frontier analysis ) and fiscal variables. The 2nd essay in this chapter aims to place the inefficiency determiners. The 3rd chapter presents an original essay on the rating of the public conveyance efficiency with a behavioural attack. This chapter shows that the directors ‘ irrational behaviour ( optimistic ) affects the public conveyance operators ‘ efficiency. Finally, chapter four nowadayss an original essay on the rating of public conveyance efficiency by presenting the corporate administration mechanisms to explicate the inefficiency. It shows that public conveyance operators inefficient can be explained by the corporate administration jobs.

In order justify the architecture of our thesis and the logic of its development, we describe in some depth the purpose and the methodological analysis used for each essay.

In the first chapter, we conduct a literature reappraisal on public conveyance sector efficiency utilizing a new original technique: the categorization strategy. This technique is appropriate here because it helps us to understand the existing theoretical and empirical surveies in this topic. Going from all available published documents in this country of research, we use six standards to sort them. Consequences are presented and analyzed so that we can hold a precise thought about all these published plants.

The categorization strategy technique is practical tool to carry on a comprehensive literature reappraisal in a peculiar topic. It is a powerful technique that can assist us to sum up and understand our field of research. The end product of this first chapter is an overview shows the old development of researches in this country conveyance economic sciences.

The technique used in this chapter has the advantage that it offers a comprehensive literature reappraisal. This means that this technique goes far from the narrative literature to another 1 that helps us to understand the logic of the development of our topic. For illustration, it goes into the account of the ground of the concentration of the survey on a particular context or around a specific period. We use some standards to sort documents in our former. We concentrate on some interesting point such as the methods that old research paper measures the public conveyance efficiency, the used end products and inputs and we try to happen the ground of the usage of each method. It is besides of involvement to widely discourse the premise and hypotheses that they make in their surveies such as those comparative to the returns to scale. And we discuss the deductions of the empirical consequences of these surveies.

In amount, we can confirm that the usage of the categorization strategy technique is an first-class manner that gives us photography about what has been developed in the rating of public conveyance efficiency. It is besides an interesting manner to architect our empirical essays in this field since it offers the future waies of research. These waies are the consequence of strict critics of old work in the sphere. We explore these waies in the remainder of our thesis.

Our first empirical essay explores two future waies of research proposed in our study paper presented in chapter one. We advance two original essays on the rating of public conveyance efficiency.

In the first essay of this chapter, we aims to mensurate the of 54 public conveyance operators during 2000-2011. We adopt a parametric attack utilizing the stochastic frontier analysis ( SFA ) theoretical account of production map for the panel informations developed by Batese and coelli ( 1995, 1996 ) . As an alternate attack to the DEA, the great advantage of SFA is that it can mensurate non merely proficient inefficiency, but besides recognises the fact that random dazes, beyond the control of manufacturers, can impact production. For this ground, the indispensable thought of SFA is that the error term is composed of two parts: one one-sided constituent that captures the effects of the comparative inefficiency of the stochastic frontier, and a symmetric constituent that allows a random fluctuation of the frontier between companies and includes the effects of measuring mistake, other statistical noise, and random mistake outside the control of the company. Therefore, the chief attractive force of the stochastic frontier attack, in contrast to deterministic attacks such as the DEA, that isolates the influence of factors to the inefficient behavior, therefore rectifying possible upward prejudice of the inefficiency of deterministic methods ( see Jarboui et al. , 2012 ) . Harmonizing to the literature on public conveyance operators ‘ efficiency, we besides use fiscal variables as placeholders of inputs and end products. The used variables are already proposed in the first chapter, which they seem first-class variables to mensurate the efficiency. The 2nd essay purposes to place the inefficiency determiners of public conveyance operators. This chapter initiates the explication of the inefficiency stochastic constituent. In the conveyance economic sciences literature, several surveies have examined the inefficiency determiners of public conveyance, but they tend to concentrate on the variables outside the house ‘s control ( see De Borger et al. , 2002 ) . Mentioning to concern efficiency literature, we propose variables under the house ‘s control such as investing, runing income and house size. These variables have already proposed in the first study paper ( see Jarboui et al. , 2012 ) .

Efficiency rating is a well-known issue in economic literature. By and large, most efficiency surveies are aimed at mensurating the efficiency and development of methods to measure conveyance operators ‘ efficiency. However, inefficiency determiners research has been ignored or explained by merely exogenic factors. Therefore, the determiners of conveyance operators ‘ inefficiency remain vague. Efficiency betterment and advancement appraisal towards accomplishing the ends are of import tools in the execution of an effectual concern scheme, service bringing, and service quality.

This chapter contributes to the public conveyance efficiency survey. This research is the first survey purposes to measure the efficiency of 54 public conveyance operators from 18 states utilizing informations from World-scope Databases and Thomson Databases. The major part of this chapter is to place endogenous inefficiency determiners ( under the control of the company ) . This survey highlights the cardinal function of investing, runing income and house size. Furthermore, we test through empirical observation the consequence of these variables on the public conveyance operators ‘ efficiency. Furthermore, we discuss transport operators efficiency of the developed states and the underdeveloped 1s.

The 2nd original empirical essay purposes to measure the conveyance operators ‘ efficiency via a behavioural attack. The aim of this chapter is to analyze the consequence of managerial optimism on the public conveyance efficiency. Mentioning to the behavioural attack, we develop a theoretical account that explains the stochastic inefficiency constituent by behavioural variables such as managerial optimism. Our part is to show that managerial optimism could explicate the public conveyance operators ‘ inefficiency. Therefore, our thought is to propose that managerial optimism as an inefficiency determiner and should be positively correlated with this term.

Our purpose in this chapter is to originate a new attack that still until know unexplored in the transit literature. We will interpret the consequences of old research from behavioural corporate finance to the survey of conveyance houses ‘ proficient efficiency. This chapter is an essay in behavioural conveyance literature. It aims to explicate why houses suffer from inefficiency in its production frontier.

This will be a probationary to suggest new account to proficient efficiency deformations that derives from CEOs psychological prejudices. In our thesis we concentrate on the consequence of managerial optimism in explicating the consequence of such psychological prejudices on deducing transport houses proficient efficiency. Managerial optimism is one of the most documented prejudice in the economic literature and in recent old ages there is a moving ridge of documents that investigate its consequence on houses determinations ( Heaton, 2005, Malmendier and Tate, 2005a, 2005b, 2008, Lin et Al, 2005, Campbell et Al, 2011 and Huang et Al, 2011 ) . We will try through this chapter to discourse in some depth the possible consequence of CEOs unreason that will be a logic reply of his/her optimism consequence on act uponing his/her house efficiency.

The 3rd original empirical essay ( chapter four ) aims to measure the public conveyance operators ‘ efficiency via the corporate administration attack. However, we besides test the effects of certain corporate administration mechanisms on the public conveyance operators ‘ inefficiency.

Corporate administration has been mostly ignored from the survey of the efficiency of conveyance house ‘s proficient efficiency. It will be an interesting manner to analyze the consequence of good documented corporate administration mechanisms on house ‘s proficient inefficiency. Our purpose will be to look into the consequence of internal corporate administration mechanism on impacting the deficit of the production map Y*-Y.

Our purpose is to through empirical observation prove the consequence of corporate administration mechanisms on pointing the efficiency of conveyance houses. In other words, we would wish to suggest the optimum corporate administration construction that can get to increase conveyance houses degree of proficient efficiency.

Finally, this doctorial thesis is architect in a manner that we can research why conveyance houses do n’t accomplish optimum production schemes and so they are by and large observed bellow the optimum production frontier. Explanations are classified into three groups: the first one includes fiscal variables, the 2nd 1 is an original essay to present the consequence of CEOs unreasons that derives from managerial optimism prejudice, while the 3rd groups explores the possible consequence of corporate administration mechanisms.

Chapter I:

Public route conveyance efficiency: a literature reappraisal via the categorization strategy

Abstraction

The paper provides a literature reappraisal of public route conveyance efficiency. We classified 24 articles published between 2000 and 2011, based on diaries, day of the month of publication, the nature of the documents ‘ , the context of the survey, the adopted attack by which efficiency is measured, the adopted end products and inputs and empirical findings. Consequences are presented, discussed and future waies are generated. The categorization strategy technique shows that the application of the assorted attack of Data Envelopment Analysis and Stochastic Frontier Analysis ( DEA-SFA ) , with operators of different nationalities, is more robust for analysis of public conveyance efficiency, and for placing beginnings inefficiency. Fiscal variables are of import inputs and end products for efficiency surveies. However, although the frontier literature has well contributed to the cognition of public conveyance engineerings and the determiners of public presentation, it has been found that many of import issues remain unsolved.

Keywords Public route conveyance A· Efficiency and public presentation A· Classification strategy A· Data Envelopment Analysis A· Stochastic Frontier Analysis

JEL Classification C14 A· C67 A· C83 A· D24 A· L92 A· N70 A· R40

Introduction

Public conveyance by coach is the pillar of the transit system in an economic system ( Agarwal et al. 2011 ) . Although manners of travel in most developed states are progressively dependent on the auto ( see Banister and Berechman 2000 ) , doing a downward tendency in demand for conveyance in most industrial economic systems, public conveyance by coach remains an of import manner of transit. Bus conveyance services are provided by public, private or assorted corporations in a extremely regulated environment. In add-on, of import components of the conveyance substructure are basically ( semi- ) public goods. Therefore, there are economic grounds for a important grade of province intercession in this country, chiefly based on the acknowledgment of a assortment of market failures ( e.g. , Kerstens 1996 ) . Over the last two decennaries, serious concerns about possible regulative failures have resulted in a reappraisal of the function of authorities in forming this sector ( Glaister et al. 1990 ) .

In position of these concerns, it is of great involvement to look into whether public conveyance ‘ operators-work in a technically efficient mode ( e.g. , achieve economic ends such as understating costs or maximizing end product ) . An effectual and solid step of efficiency can do a important part to the treatment of the comparative virtues of the supply of public and private conveyance services.

Since the early 1980s, assorted techniques for gauging frontier have been developed to find the best patterns in any industry. Frontier methods are used to separate between efficient and inefficient production and to gauge the grade of ( in ) efficiency. Not surprisingly, frontier methods have found their manner into the conveyance sector, and surveies on the productiveness and efficiency of about all conveyance manners are now available in the literature. A comprehensive survey of parametric and non-parametric frontier methods and empirical findings for urban public conveyance has been published by De Borger et Al. ( 2002 ) . Our survey presented below efforts to make full a spread in the available literature. While an overview of the pioneering surveies on public conveyance operators has late appeared ( e.g. , von Hirschhausen and Cullmann 2010 ) , a thorough probe of frontier methods and empirical consequences for public conveyance of the 2000s is non yet available.

This survey is complementary to De Borger, with a different categorization technique and survey period. This last survey is an overview of surveies published during the 1990s. Furthermore, it is an analysis of frontier surveies. This research is based on work published during the 2000s ‘ . We use standards to choose, sort and analyze the surveies in this research. In this chapter, we use the categorization strategy technique to analyze the documents selected. Thus, is the De Borger et Al. ( 2002 ) has an influence on the ulterior surveies of public conveyance efficiency?

The aim of this chapter is to supply a comprehensive literature reappraisal of public conveyance efficiency and depict the different adopted attacks and methods. It besides evaluates the parts of frontier analysis as a manner to understand public presentation of public conveyance.

The remainder of chapter is organised as follows: the following subdivision aims to specify cardinal constructs and inside informations the methodological analysiss of public presentation and proficient efficiency analysis. Section 3 trades with the methodological attack and treatment of research processs of the literature. As good, it introduces the categorization strategy technique. In this subdivision, we describe standards ‘s and categorization methods used. In Sect. 4, the consequences and readings of the categorization of documents are presented, and we identify the determiners that may explicate the distinction of the efficiency consequences that are reported in the literature. Finally, Sect. 5 closes the chapter by offering decisions and efforts to supply some positions on future research.

Concepts and methodological analysiss

Performance serves to compare the behavior of administrations across infinite, over clip, or both. Furthermore, productiveness is a construct which evaluates the end products of an administration in relation to inputs used in the production procedure. This construct obtains its significance for the economic comparings over clip between different administrations. For illustration, increased productiveness over clip indicates that, compared to the inputs used, administrations have managed to bring forth more end product.

Therefore, public presentation measuring can be made by agencies of comparative analyses in one sector or across sectors, either at the national or international degree. Above all, we must stipulate the aims of the administrations assessed. In rule, public sector activities ( such as public conveyance ) may function as a set of aims, doing the rating of their public presentation a hard exercising ( De Borger et Al. 2002 ) . Indeed, from a welfare economic point of view, the populace sector attends to four chief ends: efficiency, equity, fiscal balance and macroeconomic stabilization ( Marchand et al. 1984 and Rees 1984 ) .

However, despite the being of multiple aims, the focal point in many empirical surveies ( e.g. Barnum et Al. 2011 ) in the conveyance industry is on issues of productiveness and efficiency. There are at least two grounds for this happening. First, a transparent model for productiveness and efficiency measuring has been developed, unlike for the other aims. Second, it has been forcefully argued that, independently of the other aims, a first and indispensable demand for all public sector activities is to run in a efficient mode ( Marchand et al. 1984 ; Pestieau and Tulkens 1993 ) . Therefore, in the balance of this subdivision, we review the most relevant efficiency impressions and explicate how to do them operational.

Efficiency

Farrell ( 1957 ) is the laminitis of frontiers and efficiency step, which provided definitions and a model for ciphering the proficient and allocative ( in ) efficiency. Based on his, efficiency measuring and appraisal of frontiers has had an explosive development over the past decennaries. Literature paperss the being of several types of efficiency, of which the three most normally used are: proficient efficiency, allocative efficiency and scale efficiency.

First, proficient efficiency relates the end products ( merchandises or consequences ) to the existent inputs ( the resources consumed ) . This is the frontier of all production possibilities. This set summarises all the technological possibilities of transforming inputs into end products. A manufacturer is technically inefficient, if their production is below the production possibility frontier. Technical efficiency indicates, for a given degree of production, how a manufacturer uses its resources in an optimum manner ( see Coelli et Al. 1998 ) .

Second, allocative efficiency requires the specification of a behavioral end and is defined by a point on the boundary of the production possibility set that satisfies this aim, given certain restraints on monetary values and measures ( De Borger et Al. 2002 ) . Most frequently administrations are thought to be understating costs. In such a instance, a technically efficient manufacturer is allocatively inefficient if there is a divergency between observed and optimum costs.

Finally, scale efficiency indicates the optimum size of an administration. It relates to a possible divergency between existent and ideal production size. The ideal state of affairs coincides with the long-run competitory equilibrium, where production is characterized by changeless returns to scale. A manufacturer is scale efficient if its pick of inputs and end products is situated on a changeless return to scale frontier ( see De Borger et Al. 2002 ) . However, there may be increasing or diminishing returns to scale.With increasing returns to scale the fluctuation in the end product is greater than the fluctuation of the used inputs. So, if the production of an extra unit is accompanied by a lessening in unit cost, it is an economic system of graduated table. The diminishing returns to graduated table is when the fluctuation end product is lower than the fluctuation of used inputs. Therefore, the fringy cost additions, while the production of an extra unit is expensive and is accompanied by an addition in unit cost. This is a diseconomy of graduated table.

In the surveies of public conveyance, we can separate between the effectivity and efficiency. Efficiency is the ratio between end product and input. The Effectiveness is the service offered over promised service, for illustration, promptness of coachs, the figure of coach travel. In this survey, we focus on the surveies of public conveyance efficiency.

Efficiency step

In the literature, we can happen different methods for mensurating efficiency and public presentation of the public route conveyance sector. Based on the work of Farrell ( 1957 ) , the efficiency measuring and appraisal of frontiers have experienced an explosive development over the past decennaries. Data Envelopment Analysis ( DEA ) and Stochastic Frontier Analysis ( SFA ) are the two most of import alternate attacks in this respect and have been extensively studied methodological analysiss in their ain right and ubiquitously applied to an eclectic scope of industrial and organizational contexts.

In this chapter, we focus on two attacks that seem most used in this country: “ stochastic frontier analysis ” and “ informations enclosure analysis ” . DEA can be defined as a nonparametric method to mensurate the efficiency of the decision-making unit ( DMU ) with multiple inputs and multiple end products. SFA, as an alternate attack to DEA, supposes a parametric map between the inputs and end products. In the undermentioned, we give a brief description of each attack.

Data Envelopement AnalysisA

DEA modeling, ab initio proposed by Charnes et Al. ( 1978 ) , provides a comparative step of efficiency that is progressively used in measuring the public presentation of the public service industry ( Ganley and Cubbin, 1992 ) . Efficiency steps are the distances at the empirical production frontier, and the values aˆ‹aˆ‹are calculated on the footing of the Pareto efficiency norm. No premises are made about the functional signifier to the production frontier.

By and large, the DEA can be defined as a nonparametric method to mensurate the efficiency of a determination doing unit ( DMU ) with multiple inputs and multiple end products. This is achieved by building a individual practical end product to the practical input one without predefining a production map. Among the DEA theoretical accounts, the two theoretical accounts that are most widely used are named DEA-CCR ( Charnes, Cooper and Rhodes ) and DEA-BCC theoretical accounts ( Banker, Charnes and Cooper ) .

In the DEA-CCR theoretical account, the frontier is generated by the additive combination of units in the information set. The efficiency tonss obtained from this theoretical account are known as proficient efficiency ( TE ) . These tonss reflect the radial distance from the frontier estimated at the unit concerned. A lower mark of the unit amounts to inefficiency in the unit. When the unit has an efficiency mark less than 1, so there must be at least one unit in the information set that is efficient. All these units are called the mention set or the mention group for the inefficient unit. In order to obtain efficiency ; we must seek a manner to understate inputs while fulfilling non less than the given degree of end products. This theoretical account is called “ input-oriented. ” Another manner is to maximise end products without increasing inputs observed. This theoretical account is called “ output-oriented ” . The DEA-CCR theoretical account is based on the premise of changeless returns to scale ( CRS ) .

In the DEA-BCC theoretical account, the frontier is generated by the bulging board of the units in the dataset. The frontier of this theoretical account has linear features and is concave. Efficiency tonss of this theoretical account are known as pure proficient efficiency ( PTE ) . It is based on the premise of variable returns to scale ( VRS ) . In both theoretical accounts, the unit is efficient ; it is possible to cut down any input without increasing other inputs and achieve the same degrees of end product or it is possible to increase an end product without cut downing any other end products and use the same degrees of inputs. The ratio of proficient efficiency to pure proficient efficiency ( TE / PTE ) is called the return to graduated table of this unit. The influence of the DEA-CCR paper is reflected in the fact that in 1999 it was cited over 700 times ( Forsund and Sarafoglou, 2002 )[ 1 ]. The DEA-CCR theoretical account assumes changeless returns to scale so that all ascertained production combinations can be proportionately enlarged or reduced. Furthermore, the DEA-BCC theoretical account assumes variable returns to scale and is diagrammatically represented by a additive frontier convex subdivision.

The early literature frequently used deterministic parametric frontier methods. However, given that they combine the most restrictive premises ( deterministic and parametric ) , they are no longer really popular ( Lovell, 1993 ) . This attack argues that all administrations portion the same manner of production and their several efficiencies are compared to the same frontier of the full production. Furthermore, the ascertained divergency over the frontier is explained by inefficiency. This deterministic frontier attack ignores the possibility that the efficiency of an organisation may be affected by many factors beyond its control, such as scarceness of inputs, hapless public presentation tools or climatic jeopardies. The defects in this attack are the cause of the development of the stochastic attack or the composite mistake.

Stochastic Frontier Analysis

Simultaneously introduced by Aigner et Al. ( 1977 ) and Meeusen and Broeck ( 1977 ) , it assumes that the SFA is a parametric map bing between the inputs and end products. As an alternate attack to the DEA, the great advantage of SFA is that it can mensurate non merely proficient inefficiency, but besides recognises the fact that random dazes, beyond the control of manufacturers, can impact production.

For this ground, the indispensable thought of SFA is that the error term is composed of two parts: one one-sided constituent that captures the effects of the comparative inefficiency of the stochastic frontier, and a symmetric constituent that allows a random fluctuation of the frontier between companies and includes the effects of measuring mistake, other statistical noise, and random mistake outside the control of the company. Therefore, the chief attractive force of the stochastic frontier attack, in contrast to deterministic attacks such as the DEA, that isolates the influence of factors to the inefficient behavior, therefore rectifying possible upward prejudice of the inefficiency of deterministic methods. A stochastic frontier theoretical account can be expressed as an equation, where the proficient efficiency of house K is and must be positive, while the statistical noise constituent can be either positive or negative.

( 1.1 )

Where is the end product produced by the i-th house ( one = 1, 2… N ) and at the t-th period ( t = 1, 2… T ) ; is the inputs vector of the i-th house at the t-th period, I? is the parametric quantities vector to be estimated.

The first measure in work outing a stochastic frontier theoretical account is to stipulate a functional signifier, with the most common solutions based on the maximal likeliness appraisal. The SFA attack has the advantage of leting for random mistake and measurement mistakes. Another advantage of the SFA attack is that it makes it possible to analyze the construction, and look into the determiners of inefficiency. Therefore, it has a more solid foundation in economic theory ( Battese and Coelli, 1995 ) .

Comparing the non-parametric attack with the stochastic parametric frontier attack, DEA has advantages when it comes to mensurating the comparative efficiency of public conveyance operators. First, DEA is a non-parametric frontier attack and does non necessitate, stiff premises sing production engineering and specific statistical distribution of the mistake footings. Second, DEA is conformable for little sample surveies. Third, as a non-parametric frontier technique, DEA identifies the inefficiency in a peculiar bank by comparing it to similar Bankss regarded as efficient. Other DEA advantages are ( Banker and Morey, 1986 ) : easy to construe efficiency mark ; independent measuring units ( giving great flexibleness in choosing outputs/inputs ) ; and use of unmanageable and environmental factors, e.g. competition. However, the DEA theoretical account does non let for measurement random mistake. Alternatively, all these factors are attributed to inefficiency, a characteristic that necessarily leads to possible appraisal mistakes.

With DEA, all divergences from the frontier are attributed to inefficiency. The DEA does explicitly account for stochastic events such as measurement mistake in the information. DEA does non give estimations that can be easy validated with conventional statistical processs. Sensitivity to outliers has been another unfavorable judgment of DEA ( Coelli et al. , 1998, Thompson et al. , 1990, and Burgess and Willson, 1993 ) . Sensitivity to outliers may besides present jobs for gauging the SPF or any arrested development relationship. As such, the sensitiveness issue is likely over-exaggerated. A assorted attack may be an equal solution to work out the jobs of these attacks.

Methodology

Three basic attacks exist in the probe of the province of cognition in a field or capable ( see Li and Gavusgil 1995 ) . The first 1 is the Delphi technique by which experts who are familiar with the country are surveyed. The meta-analysis is the 2nd attack, where empirical surveies on the particular topic are gathered and statistically analysed. Finally, the 3rd attack is content analysis, which is the one applied in this chapter.

Contented analysis is a research method for systematic, qualitative and quantitative description of the manifest content of the literature in an country ( Marasco, 2008 ) . Following Li and Gavusgil ( 1995 ) and Seuring et Al. ( 2005 ) , to carry on an probe by content analysis, we should center on two major stairss: foremost, it is needed to specify the beginnings and processs for seeking the articles to be analysed ; so, classs must be defined for the categorization of the gathered articles.

Literature hunt process

This study was based on a survey of diaries. Hence, we exclude conference proceedings documents, Masters ‘ theses, doctorial thesiss, text editions, and unpublished working documents. Harmonizing to Nord et Al. ( 1995 ) , faculty members and practicians normally use diaries most frequently for geting information and circulating new findings, and so, journal articles represent the highest degree of research.

Certain choice standards were used to take and accept the documents in this survey. If the paper did non run into the choice standards, so it had to be excluded. The hunt process takes two stairss. In the first measure, documents were found by electronic hunt subjects on the field. We used different footings when seeking the paper to be considered. Specifically, we searched for the footings: efficiency analysis, or efficiency measuring, and efficiency frontier, stochastic frontier analysis ( SFA ) , Data Envelopment Analysis ( DEA ) , and proficient efficiency.

The first term is utilised in order to bring forth all the documents that treat the efficiency of the public conveyance sector, including documents mentioning to this topic via the deferent ‘s methods and techniques used. The 2nd term purposes to happen all documents related to the efficiency frontier of the public conveyance. This is an effort to specify documents that relate to the efficiency of public route conveyance sector. Finally, the last two footings are adopted to bring forth all documents analyzing the efficiency of the public conveyance sector via the “ Stochastic frontier analysis ” attack and the “ informations enclosure analysis ” attack. These two attacks are those most known and adopted in the analysis of efficiency frontier, and in analyzing the efficiency of the conveyance sector.

As was antecedently mentioned, documents that are included in this literature reappraisal are limited to published plants obtained from electronic beginnings. Our hunt screen literature obtained from different electronic beginnings. More exactly, we explore Science Direct, Springer Link, JSTOR, Wiley Interscience, Inderscience databases and Ingenta Connect databases. To obtain extra beginnings of information, we examine mentions cited in each relevant literature beginning.

The research covers a period of more than ten old ages between 2000 and 2011. The pick of the starting day of the month is governed by the publication of the first comprehensive survey of the literature on production frontiers for public conveyance operators generated by De Borger et Al. ( 2002 ) and published in Transport Reviews. They have established a general study of articles published during the 1990s. Our research is based on work published in the 2000s ‘ and 2010s ‘ . In the 2nd measure, we exclude all documents that are non related to the efficiency of public route conveyance sector or by coach. This means that we analysed each point based on the rubric of the manuscript, abstract, keywords that. Following that, we decided to maintain or except each of them. Finally, the documents were to the full analysed and we included the documents that were merely in the nucleus of the field analysed in this survey. After put to deathing the hunt process documents, 24 documents were obtained that met all choice standards.

Categorization method

The categorization model is based on the literature reappraisal and research in the field of conveyance sector efficiency. Harmonizing to the categorization strategy technique, the documents will be classified into six major classs: ( I ) nature of the paper, ( two ) context of survey, ( three ) attack adapted to mensurate efficiency, ( four ) nature of the informations, ( V ) inputs and end products adopted, and ( six ) empirical findings. We will discourse each class in the followers.

The nature of documents

Harmonizing to this standard, documents will be classified into two classs: a theoretical paper or an empirical one. We mean here by theoretical paper all documents that treat the job of efficiency of public conveyance without an empirical analysis, every bit good as empirical documents that measure the efficiency of public conveyance sector in a specific context and stipulate the inefficiency beginnings.

States of the survey

Under this standard, the documents will be classified harmonizing to the states of the survey. In this portion two chief inquiries are answered: what are the states for the survey of the efficiency of the public route conveyance sector of each paper and are at that place any documents that have treated this job at multi-international contexts ( between states ) .

The adopted attack to mensurate efficiency

Harmonizing to this standard, surveies will be classified into two attacks: a non parametric surveies or parametric one. We mean here by parametric surveies all documents that treat the job of efficiency of public conveyance with a stochastic frontier analysis method, every bit good as non parametric surveies that use the Data Envelopment Analysis for evaluates the efficiency of public conveyance sector. In this chapter, we focus on two attacks that seem most used in this country, which are defined antecedently.

Nature of the informations

Under this standard, the documents will be classified harmonizing to the nature of the informations used to mensurate the efficiency of public conveyance operators. Therefore, harmonizing to this standard, we seek to utilize any nature of informations ( cross subdivision, clip series or panel informations etc. ) that are the most used and just for the measuring of efficiency in public transit.

End products and inputs

In contrast to fabrication industries where end product is a clearly identifiable entity, the end product of a conveyance operator can be quantified in different ways. The cardinal ground for this difference is that the end product of a conveyance system is a service that can non be stored for future usage. Cullinane et Al. ( 2004 ) have provided a comprehensive treatment of the used variables. Therefore, the variables input and end product should reflect the aims and the existent service production procedure of the conveyance system every bit accurately as possible. Under this standard, articles will be classified harmonizing to the inputs and end products used.

Empirical findings

Harmonizing to this standard, the documents will be classified harmonizing to the efficiency tonss of each survey. We will trust on the lower limit, maximal and mean efficiency tonss in each survey to sort the documents. This standard helps measure the empirical attack and survey context, replying two inquiries: what is the attack that accurately measures the efficiency of public conveyance?

Consequences

Categorization of documents by types of paper and survey contexts

In this subdivision we focus on the types and survey contexts of documents. Table 1.1 shows the documents selected. It shows that surveies of the frontier are still an matter of involvement to this twenty-four hours: several surveies have been published during the 2000s.

Table 1.1

Documents on public conveyance efficiency

Author ( s )

Time period

Nature of paper

Context of the survey

Sample size

Input signals

End products

Approach

Empirical findings

Karlaftis ( 2004 )

1990 -1994

Empirical

USA

259 systems ( private/ populace )

figure of employeesA ; entire one-year sum of fuel used ; entire numberof vehicles operated by the system

vehicle-milesA ; entire one-year ridership

Drug enforcement administration

Average TE per group of operators: between 61.8 % and 89.3 % . When returns to scale estimations are based on effectivity, appear to be runing under diminishing returns.

Boame ( 2004 )

1990 – 1999

Empirical

Canada

30 theodolite systems

figure of coachs in the active fleet ; liters of fuel/energy ; entire figure of paid employee hours

gross, vehicle-km

Drug enforcement administration

The mean proficient efficiency of Canadian theodolite systems is 78 % , connoting an inefficiency degree of 22 % . Besides, most transit systems ( 56 % ) experience increasing returns ( IRS ) , while 29 % experience diminishing returns ( DRS ) to graduated table.

Barnum and Gleason ( 2007 )

2005

Empirical

USA

16 tonss

figure of parking infinites ; average day-to-day operating costs

average figure of autos parked in the batch during the working day ; mean day-to-day gross

SFA

Low efficiency tonss make it easy to place those tonss that need thorough scrutiny. Uncontrollable factors or other justifiable grounds account for the low tonss. Low tonss may place tonss that can and should be improved.

Cowie ( 2002 )

1990 – 1997

Empirical

Bretagne

58 companies ( private/ populace )

figure of staff employed ; fleet size

vehicle-kmA ;

Drug enforcement administration

Efficiency betterments have non occurred per Se due to scale economic systems, but are a consequence of improved internal company efficiency. This may be from a figure of beginnings such as improved working patterns, better direction of operations, increased investing or rationalizations originating from the obliteration of extra administrative / care maps.

Agarwal et al. , ( 2011 )

2004 -2005

Empirical

India

35 ( private ) province conveyance projects ( STUs )

fleet size ( figure of coachs in 100s ) ; entire staff ( entire figure of employees working in an STU ) ; fuel ingestion ; accident per kilometer

coach utilizationA ; passenger-kmA ; load factor ;

Drug enforcement administration

The consequences indicate that out of 35 STUs, 14 STUs ( 40 % ) are comparatively efficient ( efficiency score =1 ) while staying 21 STUS are comparatively inefficient ( efficiency mark & lt ; 1 ) . The overall average TE of the STUs is 83.26 % , bespeaking that on mean 16.74 % of the proficient potency of the STUs is non in usage.

De Borger et Al. ( 2002 )

1986 -2000

Theoretical

Al Research Context

22 documents ( non parametric ) 40 documents ( parametric )

diverseness of inputs

diverseness of end products

DEA ; SFA ; FDH ;

Discuss efficiency and productiveness consequences, returns to scale and scope, the relation between efficiency and effectivity, the impact of ownership, subsidies and contracts, and the function of environmental variables and web features.

Odeck and Alkadi ( 2001 )

1994

Empirical

Norway

47 companies

entire figure of seatsA ; fuel ingestion in liters ; equipment ; effectual drive hours ; entire figure of staff employed

seat-km

Drug enforcement administration

The mean coach company exhibits increasing return to scale in production of its services. The extent of such returns nevertheless varies, with size and is more prevailing among smaller companies. The mean coach company is found to hold a considerable input salvaging potency of about 28 per centum. Neither economic systems of range nor company ownership are found to hold an influence on company public presentation.

Farsi et Al. ( 2006 )

1986 -1997

Empirical

Switzerland

94 operators

entire figure of employeesA ; web length ; entire figure of bus-km ; passenger-km

figure of seat-km

SFA

This survey suggests that an econometric specification that includes separate stochastic footings for firm-specific effects and inefficiency can better the appraisals sing both inefficiencies and Scopess. The inefficiency estimations are sensitive to the adopted theoretical account.

Barnum et Al. ( 2011 )

2002 -2006

Empirical

USA

52 ( private ) theodolite bureaus

entire operating disbursals

estimated seat-hours

Drug enforcement administration

Identify the single proficient efficiencies of each type of theodolite employed in an urban country, to place allotment and proficient efficiency in the DEA aggregated score, to gauge the consequence of alterations in each type of theodolite ‘s efficiency on the overall public transit efficiency ; to offer a method for reapportioning resources in order to better efficiency.

Karlaftis ( 2003 )

1990 -1994

Empirical

USA

259 systems

( private/ populace )

sum of coachs, sum of employees, fuel

vehicle-miles

Drug enforcement administration

The largest systems operate under diminishing returns to scale, it must be noted that while the usage of vehicle-miles as the step of end product gaining controls economic systems of graduated table sufficiently from the supply side of the theodolite industry, this survey concentrates purely on the supply side of the theodolite industry.

Kumar ( 2011 )

2006 -2007

Empirical

India

31 ( private ) province

route conveyance projects

fleet size, entire figure of staff, fuel and lubricators

gross bus-day, passenger-km

Drug enforcement administration

Five SRTUs define the efficient frontier, and the staying 26 inefficient projects have a range of inputs decrease, the extent of mean overall proficient inefficiency ( OTIE ) in these SRTUs is to the melody of 22.8 per centum, operation in the zone of increasing returns-to-scale is a common characteristic for most of the projects.

P. Saxena and R. Saxena ( 2011 )

2002 -2005

Empirical

India

25 ( populace ) conveyance projects

fleet size ; entire staff ; fuel ingestion

passenger-kmA ;

seat-km

Drug enforcement administration

The potency for the mean company to better their end products is 22 % . The potency for the least efficient company is 28.5 % . The norm of the tonss is different from the tonss of the mean unit.

Holvad et Al. ( 2004 )

1991

Empirical

Norway

154 coach companies ( public / private )

fuel costs, driver costs and other costs

seat-km

DEA, MEA

DEA underestimates the decrease potency, as 69 % of the companies have larger comparative surpluss in Multi-directional Efficiency Analysis ( MEA ) than in DEA with a maximum difference of 27 % . A closer review of the entire comparative surpluss demonstrates that 52 % of the companies differ less than 1 % in the comparative potency salvaging between MEA and DEA.

Yu and Fan ( 2009 )

2001 -2002

Empirical

Taiwan

23 houses

( Public )

proficient staffA ; gross revenues staffA ;

vehicle-kmA ; passenger-km

Drug enforcement administration

The parts of the paper to the literature are that a incorporate DEA model is constructed for estimating production efficiency ( PE ) , service effectivity ( SEV ) and operational effectivity ( OEV ) ( Number of inefficient or uneffective tonss per theoretical account: 20, 15, 22 ) at the same time and dependently. The proposed theoretical account besides deals with the state of affairs where shared inputs are needed to apportion the activities and/or procedures in the operation of a theodolite house.

Sheth et Al. ( 2007 )

2007

Empirical

Greece

60 coach companies

headroom, cost, service continuance, figure of intersections, and precedence lanes

mean travelling clip, vehicle-miles, agenda dependability, and passenger-miles

Drug enforcement administration

Actual transit contrivers, directors of transit bureaus and traffic applied scientists could potentially be the users of the modeling model proposed in this research. One would try to include these determination shapers as portion of the modeling procedure.

Pestana Barros and Peypoch ( 2010 )

1995 -2008

Empirical

Portuguese republic

11 public and private companies

liquid assetsA ; figure of employees ; fuel costs ; vehicle capacity

gross revenues, figure of riders,

Drug enforcement administration

( I ) Two companies where a nil alteration in proficient efficiency co-exists with betterments in technological alteration. ( two ) One company, in which nil proficient efficiency alteration co-exists with nil alteration in technological alteration. ( three ) Companies in which negative proficient efficiency alteration carbon monoxide exists with positive technological alteration. ( four ) One company in which nil proficient efficiency co-exists with negative technological alteration. ( V ) One company in which negative proficient efficiency coexists with impairment in technological alteration.

Margari et Al. ( 2007 )

1993 -1999

Empirical

Italy

42 public companies

figure of workersA ; entire sum in liters of gasolene consumed each twelvemonth ; matching costA : entire operating outgo – the costs of labor and fuel

the annual vehicle-km ; the annual seat-km

DEA, SFA

These preliminary unadjusted DEA tonss indicate an mean efficiency degree of around 93 % for the urban houses and an mean value of 85-86 % for the assorted and intercity local public conveyance systems. The writers separate inefficiency caused by exogenic factors like ordinance and web from direction accomplishments, and conclude that pure managerial accomplishments play a minor function.

Pina and Torres ( 2001 )

Empirical

Spain

Public and private companies

fuel/100km ; cost/km or cost/traveller ; subsidy/traveller

bus-km/employ ; bus-km/bus, bus-km/inhabitant, accident rate population

Drug enforcement administration

Exogenous factors are non relevant and the private direction of urban conveyance service is non more efficient than public direction. Public companies more efficient, but non significantly Economical sector focal point, geographical extension, population denseness, no. of autos, income per capita, and population age without important influence.

Sanchez ( 2009 )

2008

Empirical

Spain

24 public and private companies

staff, fuel ingestion, figure of operating coachs

hours seats, vehicles-km, riders, frequence, handiness, comfort, safety

Drug enforcement administration

The mean index of proficient efficiency was situated at 51.03 % , of pure proficient efficiency at 94.91 % , and of scale efficiency at 52.02 % ; the ownership does non in itself entail a higher attainment of degrees of efficiency.

Odeck ( 2008 )

1995 -2002

Empirical

Norway

27 coach operators

entire figure of seats, fuel ingestion, entire figure of hours worked

seat-km

Drug enforcement administration

The potencies for efficiency in the sector ranged from 4 % to 11 % depending on the engineering assumed. Efficiency increased more in the post-merger old ages compared to the pre-mergers.

Odeck and Alkadi ( 2003 )

1994

Empirical

Norway

47 coach operators

entire figure of seats, effectual drive hours, entire figure of staff, fuel ingestion

seat-km

Drug enforcement administration

Rural operators on norm have lower average graduated table efficiency and a higher discrepancy of scale efficiency. The graduated table efficiency shows that an mean coach company is smaller than optimum. Significant fluctuation in efficiency tonss across units in the coach industry.

Hirschhausen and Cullmann ( 2010 )

1990 -2004

Emipirical

Germany

127 to 179 coach companies

figure of full-time and parttime workers ; figure of coachs

seat-km ; bus-km

Increasing returns to scale for small- and moderate-sized companies. Little addition in proficient efficiency over the old ages on norm ( 42.0-46.0 % ) . little addition of mean efficiency due to the extra restraint.

Sampaio et Al. ( 2008 )

2001 -2005

Empirical

Brazil, Spain,

England, France, Germany, Holland, Greece, Lithuania.

19 systems

entire figure of employeesA ; figure of vehicles ; fuel ( gallons per twelvemonth )

vehicles/distance travelledA ; figure of passengers/

distance travelled

Drug enforcement administration

Efficiency analysis comparing Brazilian and European conveyance systems may be really of import to highlight facets for service betterment. The DEA variable returns theoretical account used showed that merely 14.3 % of the analysed Brazilian systems are efficient or 5.3 % of the entire analysed systems. In contrast, merely 25 % of European systems were inefficient.

De Borger

et Al. ( 2008 )

1991

Empirical

Norway, France

154 ( public/ private ) Norse

55 Gallic coach operators

fuel costs, driver costs,

other costs

seat-km

Drug enforcement administration

The difference between the CRS and the VRS versions of the several theoretical accounts sums to about 8 % for the cost efficiency ratio ( average efficiencies are 57 % and 65 % ) and 9 % for the radial efficiency step based on the production frontier ( average efficiencies are 63 % and 72 % , severally ) . The cost efficiency ratios are – as expected – slightly lower, since overall efficiency is a more demanding standard. These instead low degrees of comparative efficiency indicate considerable heterogeneousness with regard to the efficiency with which single coach companies provide their services.

An advantage of the technique of categorization strategy is to do some observations, such as a high concentration of the literature on a specific day of the month, diary or survey context. Figure 1.1 shows that a survey of the efficiency of public conveyance is even a comparatively recent issue. The bulk of documents have been published in the last five old ages. In the articles mentions, the bulk of work refers to the survey of De Borger et Al. ( 2002 ) since it provides an overview of surveies of the frontier in the public conveyance sector and provides an overview of methods used to mensurate efficiency and determiners of inefficiency of public conveyance operators. Therefore, the survey by De Borger et Al. ( 2002 ) contributes to the increasing figure of published surveies on this country, which, shows that the study paper have a great involvement in scientific research.

Fig. 1.1: Distribution of documents on public conveyance efficiency by day of the month of publication

Harmonizing to Figure 1.2, the analysis of the efficiency of public conveyance is an interesting instance in all different economic systems. Harmonizing to the documents examined in this survey, we find that the U.S. and Norse contexts are those most studied. However, other states that have late become interested in this field of research. For illustration, Agarwal et Al. ( 2011 ) and Kumar ( 2011 ) propose an application in the Indian context. Yu and Fan ( 2009 ) used Taiwan informations and Hirschhausen and Cullmann ( 2010 ) studied German information. Merely Sampaio et Al. ( 2008 ) and De Borger et Al. ( 2008 ) adopted an international comparative position.

Fig. 1.2 Distribution of documents on public conveyance efficiency by states of surveies.

Categorization by efficiency rating method

The categorization strategy technique is a technique to understand literature in a specific country of aˆ‹aˆ‹research. Figure 1.3 illustrates the consequences of categorization of articles based on the method adopted. It shows that the bulk of surveies have adopted the DEA method, but there are some surveies that adopt the method SFA, and a really limited figure of surveies that adopt a comparative position, or assorted for two DEA and SFA method.

Fig.A 1.3: Documents distribution by the adopted method

Sampaio et Al. ( 2008 ) have justified their acceptance of the DEA method. When units are found inefficient, the DEA method automatically generates mark units. Therefore, DEA identifies that a certain DMU is inefficient, the DMU of mention against which the DMU is inefficient. In most instances, the non-parametric analysis is preferred. But, by and large, the peculiar pick of the DEA is uncoplete. This is the ground a figure of surveies have adopted a comparative position, a assorted method or a dual method for the survey of frontier, for illustration, Holvad et Al. ( 2004 ) .

Stated merely, the job is that dominated companies in the public conveyance can look efficient, and a important portion of the studied are measured against these dominated mention units, which seems to name for the usage of another method or type of efficiency index mentioning merely to non-dominated mention units. Furthermore, in contrast to the surveies based on the DEA method, it is necessary to follow another attack to analyze the efficiency of public conveyance operators. This is the instance for the survey of Margari et Al. ( 2007 ) . They implement the DEA-SFA assorted attack proposed by Fried et Al. ( 2002 ) . This attack is based on the decomposition of the measuring of the DEA inefficiency into three constituents: exogenic effects, uneffective direction and stochastic events.

Categorization by nature of informations

In our sample of documents examined, we conclude that the informations used come in different natures. Therefore, several surveies are based on panel informations: either cylindrical or non cylindrical panels, for illustration, Cowie ( 2002 ) . Other surveies used informations such as cross subdivision ( for illustration, Karlaftis, 2003, 2004 and Kumar, 2011 ) . However, Boame ( 2004 ) and Saxena and Saxena ( 2011 ) have used type informations clip series. In recent old ages, normally surveies of the efficiency of public conveyance usage panel informations in their applications ( e.g. , Sheth et al. , 2007, Odeck, 2008, Yu and Fan, 2009, Hirschhausen and Cullmann, 2010 and Barros and Peypoch, 2010 ) . This establishes the dependability of such informations for measuring the efficiency of public conveyance.

Panel informations sets for economic research possess several major advantages over conventional cross-sectional or clip series informations sets ( e.g. , Hsiao ( 2003 ) ) . Panel informations normally give the research worker a big figure of informations points, increasing the grades of freedom and cut downing the collinearity among explanatory variables, therefore bettering the efficiency of econometric estimations. More significantly, longitudinal informations allow a research worker to analyze a figure of of import economic inquiries that can non be addressed utilizing cross-sectional or time-series informations sets. Panel information besides provide the possibility of bring forthing more accurate anticipations for single results than time-series informations entirely. If single behaviors are similarly conditional on certain variables, panel informations provide the possibility of larning an person ‘s behavior by detecting the behavior of others in add-on to the information on that person ‘s behavior.

Categorization by end products and inputs adopted

Probably, the most noteworthy inputs of Table 1.1 are those demoing the high variableness in the usage of inputs and end products in public conveyance operators ‘ specification engineering. Most surveies use labour and capital as inputs ( Yu and Fan, 2009 has an application utilizing labour as the lone input ) . But non all of them include energy. For illustration, Cowie ( 2002 ) includes the figure of staff employed and the size of park and Farsi et Al. ( 2006 ) use the entire figure of employees, web length, the entire figure of bus/kilometres and rider kilometers, energy has been eliminated for these surveies. In contrast, Boame ( 2004 ) and Agarwal et Al. ( 2011 ) include energy as a step of inputs.

Some surveies include environment variables to supply more inside informations on inputs quality. For illustration, Sheth et Al. ( 2007 ) include the length of service, the figure of intersections and precedence lanes as inputs. Agarwal et Al. ( 2011 ) see the size of the park, entire staff, fuel ingestion and accidents per kilometer. Barnum et Al. ( 2011 ) include the entire operating disbursals ; Barros and Peypoch ( 2010 ) include liquid assets, the figure of employees, fuel costs, vehicle ability. A similar assortment of Numberss of indexs is observed with end product. Furthermore, the usage of traditional inputs such as labor, energy and vehicles poses a permutation job among inputs. For conveyance, this would means that to bring forth a fixed degree of end product, a coach or conveyance operation adapted could replace labor for vehicles, or utility vehicles for energies. Therefore, the riddance of nonsubstitutable inputs would normally consequences in some truly inefficient houses being reported as efficient. Since, increasing the figure of inputs and end products consequences in higher efficiency tonss. Further, for the ground of the random mistake constituent in all variables, the larger figure of inputs and end products, the more possible that a house ‘s efficiency tonss will be high.

Some surveies use supply-oriented indexs such as “ vehicle-km ” as end product ( e.g. , Cowie ( 2002 ) , Karlaftis ( 2003, 2004 ) , Sheth et al. , ( 2007 ) , Yu and Fan ( 2009 ) ) . However, more recent surveies used supply-oriented indexs in their application, such as “ seat-km ” as an appropriate step of end product. Margari et Al. ( 2007 ) , De Borger et Al. ( 2008 ) , Odeck ( 2008 ) and Saxena and Saxena ( 2011 ) used “ seat-km ” as end product step in their surveies. Hirschhausen and Cullmann ( 2010 ) used “ vehicle-km ” and “ seat-km ” in their application as an appropriate step of end product.

Indeed, the gross, runing income and gross revenues of their portions are used as steps of end product in several surveies, for illustration, Barros and Peypoch ( 2010 ) and Kumar ( 201