The efficiency of the container port industry has been variously studied utilising either Data Envelopment Analysis (DEA) or Stochastic Frontier Analysis (SFA). Given the strengths and weaknesses associated with these two approaches, the efficiency estimates and scale properties derived from these analyses are not always convincing. This paper applies both approaches to the same set of container port data for the world’s largest container ports and compares the results obtained. A high degree of correlation is found between the efficiency estimates derived from all the models applied, suggesting that results are relatively robust to the DEA models applied or the distributional assumptions under SFA. High levels of technical efficiency are associated with scale, greater private-sector participation and with transhipment as opposed to gateway ports. In analysing the implications of the results for management and policy makers, a number of shortcomings of applying a cross-sectional approach to an industry characterised by significant, lumpy and risky investments are identified and the potential benefits of a dynamic analysis, based on panel data, are enumerated.

The technical efficiency of container ports: Comparing data envelopment analysis and stochastic frontier analysis

Theory of Production

https://repositorio-aberto.up.pt/bitstream/10216/67487/2/51902.1.pdf

Public transit performance: What does one learn from frontier studies?

http://doc.rero.ch/record/5244/files/1_wp0201.pdf

The use of a variable cost function in the regulation of the Italian water industry

This paper examines the performance of panel data models in measuring cost-efficiency of electricity distribution utilities. Different cost frontier models are applied to a sample of 59 utilities operating in Switzerland from 1988 to 1996. The estimated coefficients and inefficiency scores are compared across different specifications. The results indicate that while the average inefficiency is not sensitive to the econometric specification, the efficiency ranking varies significantly across models. The reasonably low out-of-sample prediction errors suggest that panel data models can be used as a prediction instrument in order to narrow the information gap between the regulator and regulated companies.

/pdf/regulation-and-measuring-cost-efficiency-with-panel-data-2r69rbl09b.pdf

Regulation and measuring cost efficiency with panel data models: application to electricity distribution utilities

In deregulated transport markets, a firm's ownership status and management system represent an important issue. Property right theory suggests that productivity and performance are higher in the private than in the public sector. In Switzerland, providers of bus transportation are traditionally corporations, though a large part of their equity shares are still held by the public sector (federal government, cantons, municipalities). This paper examines the potential impact of ownership on the cost of bus service provision for a sample of private, public and mixed bus companies in Switzerland. The estimation of a translog cost model has been considered for 34 bus transit companies observed over 5 years (1991–1995). The results only partially confirm that if the private sector holds shares in the company's capital, efficiency is enhanced. In addition, measures of economies of scale and density are derived and discussed within the actual public transport policy.

/pdf/the-influence-of-ownership-on-the-cost-of-bus-service-327d5pvtp3.pdf

The influence of ownership on the cost of bus service provision in Switzerland - an empirical illustration

This paper presents evidence for scale inefficiency and overall cost inefficiency for 40 regional bus companies in a region of North Italy. A translog cost function for a five-year panel is estimated and measures of economies of scale and density are derived. The estimation results allow for a discussion of inefficiency in terms of sub-optimal scale and density. Overall cost inefficiency is estimated by means of a frontier cost function. The findings are discussed in the Italian political and regulatory context. (A)

Cost Structure and efficiency of Local Public Transport: The case of Emilia Romagna bus companies

Inefficiency in a regulated industry: the case of the Swiss Regional Bus Companies

The aim of this study is to analyze the scale and cost inefficiencies in operation for the Swiss regional bus companies. For this purpose,we have considered estimation of a stochastic and a deterministic frontier cost model for a sample of 93 bus companies in 1989. The estimates of inefficiency from the frontier models are compared and discussed within the political and regulatory setting within which the Swiss regional bus companies operate. The empirical results indicate that regulation does not seem to influence the cost efficiency significantly. Only the tariff subsidies have a negative influence on efficiency. This is an interesting result because in the current transport policy debate, the abolition of this kind of subsidy has been raised.

Paola Prioni

Papers

The influence of ownership on the cost of bus service provision in Switzerland - an empirical illustration

Cost Structure and efficiency of Local Public Transport: The case of Emilia Romagna bus companies

Inefficiency in a regulated industry: the case of the Swiss Regional Bus Companies

Is Scale and Cost Inefficiency in the Swiss Bus Industry a Regulatory Problem? Evidence from a Frontier Cost Approach