TY - JOUR
T1 - Cost Properties and Optimal Network Configuration of Italian Local Public Transport Firms
AU - CAMBINI, CARLO
AU - PIACENZA, MASSIMILIANO
AU - Davide, VANNONI
PY - 2006/1/1
Y1 - 2006/1/1
N2 - This paper analyses the cost structure of a sample of Italian local public transport
(LPT) companies operating in medium and large urban centres. The main focus is to
identify the proper network configuration for the LPT service, by verifying the presence and
the extent of scale and density economies. Technological characteristics of public transit
systems are analysed by estimating both variable and total cost function models, which
consider three alternative supply-oriented output measures and includes firm-specific fixed
effects. The evidence is remarkably robust across the different specifications and shows the
presence of short-run and long-run economies of scale, as well as of economies of network
density, for both the average sample firm and for operators belonging to the highest
percentile (large-sized companies). This suggests that, from a technological point of view,
a proper LPT network design should at least include a large urban centre and should be
extended so as to embrace the intercity service too, while a regulatory policy aimed at
fragmenting the served area in various sub-networks would imply an efficiency loss.
AB - This paper analyses the cost structure of a sample of Italian local public transport
(LPT) companies operating in medium and large urban centres. The main focus is to
identify the proper network configuration for the LPT service, by verifying the presence and
the extent of scale and density economies. Technological characteristics of public transit
systems are analysed by estimating both variable and total cost function models, which
consider three alternative supply-oriented output measures and includes firm-specific fixed
effects. The evidence is remarkably robust across the different specifications and shows the
presence of short-run and long-run economies of scale, as well as of economies of network
density, for both the average sample firm and for operators belonging to the highest
percentile (large-sized companies). This suggests that, from a technological point of view,
a proper LPT network design should at least include a large urban centre and should be
extended so as to embrace the intercity service too, while a regulatory policy aimed at
fragmenting the served area in various sub-networks would imply an efficiency loss.
UR - https://iris.uniupo.it/handle/11579/92635
M3 - Article
SN - 1125-1964
VL - 18,2
SP - 1
EP - 20
JO - Statistica Applicata
JF - Statistica Applicata
ER -