Productivity and efficiency in the trucking industry. Accounting for traffic fatalities

Productivity and efficiency in the trucking industry. Accounting for traffic fatalities

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Article ID: iaor20043687
Country: United Kingdom
Volume: 34
Issue: 1
Start Page Number: 39
End Page Number: 61
Publication Date: Jan 2004
Journal: International Journal of Physical Distribution & Logistics Management
Authors: ,
Keywords: statistics: data envelopment analysis
Abstract:

Develops and estimates efficiency and productivity measures in the US trucking and warehousing industry in the 48 contiguous states during the years 1994–2000. The model, estimated via data envelopment analysis, accounts for both desirable outputs and undesirable outputs produced by a given vector of inputs. The model establishes an efficient frontier of operation for each year studied and can be used to determine, on an annual basis, which of the 48 states operate on the frontier. The findings indicate that the trucking and warehousing industry does not operate efficiently in all 48 states during the period studied. If the industry were to operate on the frontier of the feasible output set by using inputs to produce outputs efficiently, it could elimintate three to four fatal traffic accidents per state per year, while simultaneously increasing industry income by between $38 and $47 million per state per year. In addition, finds that traditional techniques of estimating efficiency that ignore traffic fatalities bias estimates of efficiency and total factor productivity growth.

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