The technical efficiency of Canadian urban transit systems

The technical efficiency of Canadian urban transit systems

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Article ID: iaor20052707
Country: United Kingdom
Volume: 40
Issue: 5
Start Page Number: 401
End Page Number: 416
Publication Date: Sep 2004
Journal: Transportation Research. Part E, Logistics and Transportation Review
Authors:
Keywords: performance, statistics: data envelopment analysis
Abstract:

This paper uses a bootstrap data envelopment analysis (DEA) method to estimate technical efficiency scores for Canadian urban transit systems from 1990 to 1998. Bias and confidence intervals are estimated for the efficiency scores. A Tobit regression is used to analyze the sources of efficiency change. The paper finds that the original efficiency scores are biased. The bootstrap results indicate that the average technical efficiency of the transit systems is about 78%. Most transit systems experience increasing returns to scale. While higher average transit speed increases efficiency, peaking decreases efficiency, which reinforces previous DEA efficiency studies.

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