Measuring Efficiency of German Bus Public Transport

Abstract

This paper quantifies the technical efficiency of German bus companies and elaborates on the main factors influencing their performance. Efficiency is measured with a stochastic production frontier. We test for the impact on efficiency of ownership structure and participation at tendering. Furthermore, we investigate the influence on efficiency when a bus company is a part of a multi-product enterprise. The results yield insights how public bus companies might improve their performance in order to cope with the changing market environment. The mean technical efficiency of the investigated bus companies is around 87 percent. Bus companies with participation at tendering show a significantly higher mean efficiency than other companies. The ownership structure has no influence on technical efficiency.Stochastic Frontier Analysis, Production Function, Public Transport, Efficiency Analysis,