Cost-Efficiency Analysis of a Regulated Public Service: the case of Regional Bus Services in Italy

Fazioli, Roberto (1992) Cost-Efficiency Analysis of a Regulated Public Service: the case of Regional Bus Services in Italy. Bologna: Dipartimento di Scienze economiche DSE, p. 15. DOI 10.6092/unibo/amsacta/5212. In: Quaderni - Working Paper DSE (148). ISSN 2282-6483.
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Abstract

This paper represents an application of the so-called evaluative or performance-approach to the analysis of a regulated sector as public transport. The aim of this work is to provide more information to the debate on the privatization programmes. A translog cost function for a five- year panel is estimated and measures of economies of scale and density are derived. Indeed, from the derived cost-efficiency frontier evidence for scale inefficiency and overall cost inefficiency can be noted for 40 regional bus companies in Emilia Romagna. 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 emphasize strong evidence for merger policies because of too little size of actual operators and non significant difference in cost-efficiency between public and private enterprises operating in a strongly regulated sector.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Fazioli, Roberto
Subjects
ISSN
2282-6483
DOI
Deposit date
21 Jun 2016 10:20
Last modified
21 Jun 2016 10:20
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