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The impact of ownership on the cost of bus service provision: an example from Italy

[journal article]

Ottoz, Elisabetta
Fornengo, Graziella
Di Giacomo, Marina

Abstract

The paper examines the potential impact of ownership on the cost of bus service provision for a sample of 65 private and 12 public companies providing local public transit (LTP) in Piedmont (Italy) from 1998 to 2002. A translog cost frontier is estimated using the model in Battese and Coelli (1995)... view more

The paper examines the potential impact of ownership on the cost of bus service provision for a sample of 65 private and 12 public companies providing local public transit (LTP) in Piedmont (Italy) from 1998 to 2002. A translog cost frontier is estimated using the model in Battese and Coelli (1995) where inefficiency scores are allowed to vary across firms and over time. A public ownership dummy is included in the inefficiency model and it is always positive and significant. Density and scale economies and cost inefficiencies are then computed. Private companies seem to experience higher density and scale economies than public ones. Cost inefficiencies appear higher in the public sample.... view less

Document language
English

Publication Year
2009

Page/Pages
p. 337-349

Journal
Applied Economics, 41 (2009) 3

DOI
https://doi.org/10.1080/00036840601007260

Status
Postprint; peer reviewed

Licence
PEER Licence Agreement (applicable only to documents from PEER project)


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© 2007 - 2025 Social Science Open Access Repository (SSOAR).
Based on DSpace, Copyright (c) 2002-2022, DuraSpace. All rights reserved.