This paper focuses on the performance of Norwegian bus companies subsidized by the government. The performance is evaluated from a productive efficiency point of view. The framework is that of a deterministic non-parametric Data Envelopment Analysis (DEA) approach to efficiency measurement. In this context several important issues are addressed: efficiency rankings, distribution and scale properties in the bus industry, potentials for efficiency improvements in the sector, the impact of ownership, area of operation and scope, and ways of improving efficiency in the sector. The findings show that the average bus company exhibits increasing return to scale in production of its services. The extent of such returns however vary, with size and is more prevalent among smaller companies. The average bus company is found to have a considerable input saving potential of about 28 percent. Neither economies of scope nor company ownership are found to have an influence on company performance. It is suggested that geographical factors need a closer attention in future research. The implications of DEA results are discussed and concluding remarks offered.
This is a preview of subscription content, access via your institution.
Buy single article
Instant access to the full article PDF.
Tax calculation will be finalised during checkout.
Farrell MJ (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society A 120: 253–281.
Fried HO, Lovell CAK & Schmidt SS (eds) (1993) The Measurement of Productive Efficiency Techniques and Application. New York, Oxford: Oxford University Press.
Ferier GD & Lovell CAK (1990) Measuring cost efficiency in banking: econometric and linear programming evidence. Journal of Econometrics 46: 229–245.
Førsund FR (1992) Comparison of parametric and non–parametric efficiency measures: the case of Norwegian ferries. Journal of Productivity Analysis 3: 25–43.
Førsund FR & Hjalmarsson L (1974) On the measurement of productive Efficiency. Swedish Journal of Economics 76: 141–154.
Jørgensen F, Pedersen P and Solvoll G (1995) The cost of bus operations in Norway. Journal of Transport Economics and Policy 29: 253–262.
Jørgensen F, Pedersen P & Volden F (1997) Estimating the inefficiency in the Norwegian bus industry from Stochastic cost frontier models. Transportation 24: 421–433.
Lave C (1991) Measuring the decline in transit productivity in the US. Transportation Planning and Technology 15 (November 2/4): 115124.
Lewin AY, Morey AC & Cook T (1982) Evaluating the administrative efficiency of courts. Omega 10(4): 401–411.
Oum TH & Yu C (1994) Economic efficiency of railways and implication for public policy.Journal of Transport Economics and Policy 28 131–138.
Seiford LM (1990) A Bibliography of Data Envelopment Analysis (1978-1990). Department of Industrial Engineering and Operations Research, University of Massachusetts, MA.
Talvitie AP & Obeng K (1991) Productivity and performance. Transportation Planning and Technology 15 (November 2/4): 169–176.
Viton PA (1998) Changes in multi–mode bus transit efficiency, 1988-1992. Transportation 25: 1–21.
About this article
Cite this article
Odeck, J., Alkadi, A. Evaluating efficiency in the Norwegian bus industry using data envelopment analysis. Transportation 28, 211–232 (2001). https://doi.org/10.1023/A:1010333518966
- data development analysis
- efficiency measurement
- performance of bus companies