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

How far are Portuguese prisons inefficient? A non-parametric approach

In Portugal, as worldwide, especially in the past decades, crime has become an issue of increasing interest both for society and researchers. The global growth of criminality had several repercussions in the prison system. The most direct one was the overcrowding of prisons. This situation required a great amount of investment to increase the capacity of Portuguese prisons. Simultaneously, the value for money associated with the prisons’ budget has turned itself more and more relevant. These circumstances together emphasize the importance of assessing the prisons’ performance. This study measures the efficiency of Portuguese prison facilities by means of the non-parametric benchmarking approach of data envelopment analysis (DEA). However, due to the limitations of this technique, a bootstrap methodology is also applied in order to add more robustness to the results. Furthermore, a recent procedure is computed to evaluate congestion. The results show relevant levels of inefficiency in the Portuguese prison facilities, which represent an excess of several millions of Euros spent inadequately in this sector.Bootstrap; Congestion; DEA; Efficiency; Portugal; Prison facilities

TECHNICAL EFFICIENCY IN RUSSIAN AGRICULTURE

For decades, Russian agriculture had had little technological progress and virtually no foreign investment, which resulted in a stable production possibilities frontier and made the sector ideally suited to production function analysis. The production function estimations reported in Chapters 10-13 add to a series of previous studies of the input/output relationship in Russian agriculture (e.g., Clayton, 1980, 1984; Gray, 1981; Johnson and Brooks, 1983), which generally followed the same methodology. In the late 1970s and the 1980s, however, the average response production functions gave way in the economics literature to more sophisticated production analysis techniques that measured not only productivity but technical efficiency as well (Aigner, et al., 1977; Bauer, 1990). Some of the major methodological advances in applying technical efficiency analysis to individual firms were made by a joint Russian-American team in Moscow in the early 1980s (Jondrow, et al., 1982; Danlin et al., 1985), but lack of data for many sectors of the Russian economy precluded the application of this technique until the end of the decade. When the Soviet Union collapsed, the initial optimistic expectation was that many sectors of the new Russian economy could rapidly achieve both higher productivity and higher technical efficiency once market forces prevailed. Our research attempts to understand why this has not happened in Russian agriculture in terms of technical efficiency.Research and Development/Tech Change/Emerging Technologies,

Performance and Congestion Analysis of the Portuguese Hospital Services

The health care services have been characterised by a growing demand by the citizens leading to the need of more and more resources. Population aging, new pathologies and drugs as well as new treatments are some of the major factors for this. However, in hospitals, for example, consumption of a large number of inputs frequently has not corresponded to the production of the same or more proportion of outputs. Sometimes, the outputs even decline with the increase of inputs due to the influence of the congestion effect on efficiency. The heavy burden of the health sector on the state budget brings about the interest of research over its efficiency. This paper aims to assess the performance of the Portuguese hospitals and particularly the contribution of the congestion effect. We use the non-parametric technique of data envelopment analysis (DEA) for this purpose and a double-bootstrap procedure to take into account the influence of operational environment on efficiency. Afterwards, by comparing three different approaches we determine the importance of congestion in efficiency measurement and discuss its computation methodologically. The results suggest significant levels of inefficiency in 68 major Portuguese hospitals for the year 2005 and more than half of them were found to be congested.Hospitals; congestion; efficiency; DEA; Portugal

Measuring the Efficiency and Productivity of British Universities: An Application of DEA and the Malmquist Approach

This paper uses data envelopment analysis to examine the technical efficiency (TE) of 45 British universities in the period 1980/81 to 1992/93. This period was chosen primarily because it was characterized by major changes in public funding and in student : staff ratios. To shed light on the causes of variations in efficiency, TE is decomposed into pure technical efficiency (PTE), congestion efficiency (CE) and scale efficiency (SE). The analysis indicates that there was a substantial rise in the weighted geometric mean TE score during the study period, although this rise was most noticeable between 1987/88 and 1990/91. The rising TE scores are attributed largely to the gains in PTE and CE, with SE playing a minor role. The Malmquist approach is then used to distinguish between changes in technical efficiency and intertemporal shifts in the efficiency frontier. The results reveal that total factor productivity rose by 51.5% between 1980/81 and 1992/93, and that most of this increase was due to a substantial outward shift in the efficiency frontier during this period.Efficiency; Productivity; Universities; DEA; Malmquist

Data Envelopment Analysis (D.E.A.) for urban road system performance assessment

Improving the efficiency of transport networks by enhancing road system performance, lays the foundations for the positive change process within a city, achieving good accessibility to the area and optimizing vehicle flows, both in terms of cost, management and attenuation of environmental impacts. The performance of an urban road system can be defined according to different thematic areas such as traffic flow, accessibility, maintenance and safety, for which the scientific literature proposes different measurement indicators. However variations in performance are influenced by interventions which differ from one another, such as infrastructure, management, regulation or legislation, etc.. Therefore sometimes it is not easy to understand which areas to act on and what type of action to pursue to improve road network performance. Of particular interest are the tools based on the use of synthetic macro-indicators that are representative of the individual thematic areas and are able to describe the behavior of the entire network as a function of its characteristic elements. These instruments are of major significance when they assess performance not so much in absolute terms but in relative terms, i.e. in relation to other urban areas comparable to the one being examined. Therefore the objective of the proposed paper is to compare performances of different urban networks, using a non-parametric linear programming technique such as Data Envelopment Analysis (DEA), Farrel (1957), in order to provide technical support to the policy maker in the choice of actions to be implemented to make urban road systems efficient. This work is the conclusive study of road system performance analysis using DEA. The study forms part of a research project supported by grant. PRIN-2009 prot. 2009EP3S42_003, in which the University di Cagliari is a partner with a research team comprising the authors of this paper, and which addresses performance assessment of road networks, Fancello, Uccheddu and Fadda (2013a),(2013b)

An input relaxation model for evaluating congestion in fuzzy DEA

This paper develops a BCC input relaxation model for identifying input congestion as a severe form of inefficiency of decision-making units in fuzzy data envelopment analysis. The possibility approach is presented to obtain the models equivalent to fuzzy models. We use a one-model approach to determine input congestion based on the BCC input relaxation model. A numerical example is given to illustrate the proposed model and identify the congestion with precise and imprecise data. The proposed model is also used to determine the congestion in 16 hospitals using four fuzzy inputs and two fuzzy outputs with a symmetrical triangular membership function

The Human Development Index Adjusted for Efficient Resource Utilization

human development index, data envelopment analysis, efficiency, congestion and scale economics

Evaluating efficient public good provision: Theory and evidence from a generalised conditional efficiency model for public libraries

Provision of most public goods (e.g., health care, libraries, education, police, fire protection, utilities) can be characterised by a two-stage production process. In the first stage, basic inputs (e.g., labour and capital) are used to generate service potential (e.g., opening hours, materials), which is then, in the second stage, transformed into observed outputs (e.g., school outcomes, library circulation, crimes solved). As final outputs are also affected by demand-side factors, conflating both production stages likely leads to biased inferences about public productive (in)efficiency and its determinants. Hence, this paper uses a specially tailored, fully non-parametric efficiency model allowing for both outlying observations and heterogeneity to analyse efficient public good provision in stage one only. We employ a dataset comprising all 290 Flemish public libraries. Our findings suggest that ideological stance of the local government, wealth and density of the local population and source of library funding (i.e., local funding versus intergovernmental transfers) strongly affect library productive efficiency. -- Die Bereitstellung der meisten öffentlichen Güter (zum Beispiel Gesundheitsversorgung, Bibliotheken, Bildung, Polizei, Brandschutz, Stadtwerke) kann durch einen zweistufigen Produktionsprozess charakterisiert werden. In der ersten Stufe werden Produktionsfaktoren (beispielsweise Arbeit und Kapital) zur Erzeugung eines Dienstleistungspotenzials (beispielsweise Öffnungszeiten, Materialien) genutzt. Dieses Potenzial wird dann, in der zweiten Phase, in den beobachtbaren Output transformiert (zum Beispiel in Schulleistungen der Schüler, dem Bücherumlauf einer Bibliothek, aufgedeckte Straftaten). Da das Endergebnis auch von den Faktoren der Nachfrageseite bestimmt ist, führt eine unzureichende Trennung beider Produktionsstufen wahrscheinlich zu verzerrten Rückschlüssen bezüglich der öffentlichen produktiven (In-)Effizienz und ihrer Determinanten. Daher wird in dem Paper ein speziell zugeschnittenes, vollständig nichtparametrisches Effizienz-Modell benutzt. Dieses Modell ermöglicht isoliert für die 1. Produktionsstufe die Analyse der effizienten Bereitstellung öffentlicher Güter in einem Schritt. Dabei benutzen die Autoren einen Datensatz, welcher alle 290 flämischen öffentlichen Bibliotheken enthält. Die Ergebnisse legen nahe, dass die ideologische Einstellung der Gemeindeverwaltungen, Wohlstand und Dichte der ortsansässigen Bevölkerung, sowie die Art der Bibliotheksfinanzierung (zum Beispiel lokale Finanzierung oder überregionale Transfers) stark die produktive Effizienz der Bibliotheken beeinflussen.Public good provision,conditional efficiency,nonparametric estimation,libraries,local govenment