Evaluating the productive efficiency of public transport companies using additive approach
Evaluating the productive efficiency of public transport companies using additive approach
Author(s): Igor DöménySubject(s): Public Finances, Accounting - Business Administration, Transport / Logistics
Published by: Žilinska univerzita v Žiline, Fakulta prevádzky a ekonomiky dopravy a spojov, Katedra ekonomiky
Keywords: public transport; economic efficiency; additive model; data envelopment analysis;
Summary/Abstract: Research background: The effectiveness of public transport is currently a very significant topic, which is also influencing the total efficiency of the public budget (state or regional). Public transport companies (bus, rail) are usually providing their services under the public contract with the state or regional authority responsible for the ordering of these services, and they are receiving subsidies form the public budget. It is in the interest of all inhabitants that these funds will be used properly, and they will receive the corresponding quality of public transport services. Purpose of the article: The main aim of the article is to evaluate the productive effectiveness of chosen public transport companies operating in the suburban bus transport in Slovakia and Czech Republic. Methods: For evaluating the effectiveness of specific groups of specific groups oi public transport companies, an additive (weighted) approach of Data envelopment analysis (DEA), so-called slack-based model is used. Based on the results from SBM model, individual hypotheses about the significance of efficiency rate are tested using non-parametric Wilcoxon tests for one sample and Mann-Whitney test for independent samples. Findings & Value added: From the results of the efficiency evaluation using SBM DEA model it is obvious that the average productive effectiveness of public transport companies operating under PSO contracts is in general low, with two or three DMU´s achieving maximum efficiency within the given group. The significance of the difference in efficiency rate between two compared countries is also negligible. The main advantage of using the additive approach for this evaluation consists in considering the weights of inputs and outputs in the model. Suggested methodology can also be used by public authorities responsible for ordering transport services which are supported from the public budget.
Journal: Ekonomicko-manazerske spektrum
- Issue Year: 18/2024
- Issue No: 1
- Page Range: 16-27
- Page Count: 12
- Language: English
