Assessing the Efficiency of Mass Transit Systems in the United States

Frustrated with increased parking problems, unstable gasoline prices, and stifling traffic congestion, a growing number of metropolitan city dwellers consider utilizing the mass transit system. Reflecting this sentiment, a ridership of the mass transit system across the United States has been on the rise for the past several years. A growing demand for the mass transit system, however, necessitates the expansion of service offerings, the improvement of basic infrastructure/routes, and the additional employment of mass transit workers, including drivers and maintenance crews. Such a need requires the optimal allocation of financial and human resources to the mass transit system in times of shrinking budgets and government downsizing. Thus, the public transit authority is faced with the dilemma of “doing more with less.” That is to say, the public transit authority needs to develop a “lean” strategy which can maximize transit services with the minimum expenses. To help the public transit authority develop such a lean strategy, this report identifies the best-in-class practices in the U.S. transit service sector and proposes transit policy guidelines that can best exploit lean principles built upon best-in-class practices

Assessing the Relative Performance of University Departments: Teaching vs. Research

Data Envelopment Analysis (DEA) is known as a non-parametric method to evaluate the relative efficiencies of a set of homogenous decision-making units (DMUs) (i.e., banking, health, education, etc.) that use multiple inputs to produce multiple outputs. DEA models also have applications for universities or specifically, departments of a university. In practice, determining input and output measures may be based on the available data. However, lack of defining an important measure or use of invalid data may mislead the decision maker. Therefore, this study aims to assess the affect of missing values such as by discarding of outputs on DMU’s efficiency values. The up-to-date data for the departments of an engineering faculty are considered and their performances are presented based on teaching and research oriented measures.Data Envelopment Analysis, Higher Education, University Departments, Teaching, Research

Multi-Dimensional Assessment of Transit System Efficiency and Incentive-based Subsidy Allocation

Over the past several decades, contending with traffic congestion and air pollution has emerged as one of the imperative issues across the world. Development of a transit-oriented urban transport system has been realized by an increasing number of countries and administrations as one of the most effective strategies for mitigating congestion and pollution problems. Despite the rapid development of public transportation system, doubts regarding the efficiency of the system and financing sustainability have arisen. Significant amount of public resources have been invested into public transport; however complaints about low service quality and unreliable transit system performance have increasingly arisen from all walks of life. Evaluating transit operational efficiency from various levels and designing incentive-based mechanisms to allocate limited subsidies/resources have become one of the most imperative challenges faced by responsible authorities to sustain the public transport system development and improve its performance and levels of service. After a comprehensive review of existing literature, this dissertation aims to develop a multi-dimensional framework composed of a series of robust multi-criteria evaluation models to assess the operational and financial performance of transit systems at various levels of application (i.e. region/city level, operator level, and route level). It further contributes to bridging the gap between transit efficiency evaluation and the subsequent subsidy allocation by developing a set of incentive-based resource allocation models taking various levels of operational and financial efficiencies into consideration. Case studies using real-world transit data will be performed to validate the performance and applicability of the proposed models

Setting targets with interval data envelopment analysis models via wang method

Data envelopment analysis (DEA) is a mathematical programming for evaluating the relative efficiency of decision making units (DMUs). The first DEA model (CCR model) assumed for exact data, later some authors introduced the applications of DEA which the data was imprecise. In imprecise data envelopment analysis (IDEA) the data can be ordinal, interval and fuzzy. Data envelopment analysis also can be used for the future programming of organizations and the response of the different policies, which is related to the target setting and resource allocation. The existing target model that conveys performance based targets in line with the policy making scenarios was defined for exact data. In this paper we improved the model for imprecise data such as fuzzy, ordinal and interval data. To deal with imprecise data we first established an interval DEA model. We used one of the methods to convert fuzzy and ordinal data into the interval data. A numerical experiment is used to illustrate the application to our interval model

Efficiency of Financial Institutions: International Survey and Directions for Future Research

This paper surveys 130 studies that apply frontier efficiency analysis to financial institutions in 21 countries. The primary goals are to summarize and critically review empirical estimates of financial institution efficiency and to attempt to arrive at a consensus view. We find that the various efficiency methods do not necessarily yield consistent results and suggest some ways that these methods might be improved to bring about findings that are more consistent, accurate, and useful. Secondary goals are to address the implications of efficiency results for financial institutions in the areas of government policy, research, and managerial performance. Areas needing additional research are also outlined.

Efficiency and Bank Merger in Singapore: A Joint Estimation of Non-Parametric, Parametric and Financial Ratios Analysis

This paper provides event study window analysis of pre- and post-merger bank performance in Singapore by employing Financial Ratio Analysis and Data Envelopment Analysis (DEA) approach. The findings from financial ratio analysis suggests that the merger has not resulted in a higher profitability of Singaporean banking groups post-merger, which could be attributed to the higher costs incurred. However, the merger has resulted in higher Singaporean banking groups’ mean overall efficiency. In most cases, the acquiring banks mean overall efficiency improved (deteriorates) post-merger resulting from merger with a more (less) efficient bank. Further, Tobit regression analysis is employed to explain changes in the efficiencies with the finding shows that, more efficient banks tend to maintain higher degree of capitalization, post higher profits and incur higher overhead costs.Bank Mergers, Data Envelopment Analysis (DEA), Tobit Model, Financial Ratios, Singapore