Browse > Article

Measuring the Revenue Efficiency of Korean and Japanese Railways Using a Stochastic Frontier Approach (A Comparison with Their Cost Efficiency  

Park, Jin-Gyeong (한국철도기술연구원)
Kim, Seong-Su (서울대학교 환경대학원)
Publication Information
Journal of Korean Society of Transportation / v.27, no.4, 2009 , pp. 63-76 More about this Journal
Abstract
On the basis of a Stochastic Frontier Approach (SFA), this paper analyses revenue efficiencies for the same sample of Korean and Japanese railways in the papers which analyze cost efficiencies using a generalized translog functional form. The paper also compares the results of revenue efficiencies with cost efficiencies and evaluates the effects of managerial autonomy and privatization on the firm-specific efficiencies. The results show that the average estimate of revenue inefficiency is 7.02% when the term of inefficiency is assumed to be distributed as a half-normal and 6.98% as a exponential for the total sample. Also, standardized inefficiencies in revenues (7.5%) are greater than those in costs (2.1%). JR East and JR West are found to be most efficient on the revenue side and on the cost side respectively while JNR and JR Kyushu are worst efficient on the both sides. Finally, the correlations between efficiencies in revenues and costs also between efficiencies and privatization are positively correlated. The results suggest that the most independent companies, with increased managerial autonomy via privatization, are the most efficient in both revenues and costs.
Keywords
Railways; Revenue Efficiency; Cost Efficiency; Stochastic Frontier Approach; Korea and Japan;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
연도 인용수 순위
1 박진경ㆍ김성수(2007), '확률적 비용변경 접근법을 이용한 한국과 일본 철도산업의 효율성과 생산성 분석', 대한교통학회지, 제25권 제6호, 대한교통학회, pp.141-157   ScienceOn
2 日本国土交通省鉄道局, '각 연도 鐵道統計年報'
3 한국철도기술연구원(2004), '일본의 철도투자 확대 전략에 관한 조사 분석 연구'
4 Cowie, J. and G. Riddington(1996), 'Measuring the Efficiency of European Railways', Applied Economics, Vol. 28, pp.1027-1035   DOI   ScienceOn
5 Gathon, H. J. and P. Pestieau(1995), 'Decomposing Efficiency into Its Managerial and Its Regulatory Components: The Case of European Railways' European Journal of Operational Research, Vol. 80, pp.500-507   DOI   ScienceOn
6 Oum, T. H., W. G. Waters Ⅱ and C. Yu(1999), 'A Survey of Productivity and Efficiency Measurement in Rail Transport', Journal of Transport Economics and Policy, Vol. 33, pp.9-42   ScienceOn
7 Berger, A. N., Humphrey, D. B. and L. B. Pulley(1996), 'Do Consumers Pay for One-stop Banking? Evidence from an Alternative Revenue Function', Journal of Banking and Finance, Vol. 20, pp.1601-1621   DOI   ScienceOn
8 Aigner, D., C. A. K. Lovell and P. Schmidt (1977), 'Formulation and Estimation of Stochastic Frontier Production Function Models', Journal of Econometrics, Vol. 6, pp.21-37   DOI   ScienceOn
9 Cantos, P. and J. Maudos(2001), 'Regulation and Efficiency: The Case of European Railways', Transportation Research A, Vol. 35, pp.459-472   DOI   ScienceOn
10 Stevenson, R. E.(1980), Likelihood Functions for Generalized Stochastic Frontier Estimation:, Journal of Econometrics, Vol. 13, pp.57-66   DOI   ScienceOn
11 박진경ㆍ김성수(2006), '한국과 일본 철도산업의 비용구조와 생산성 분석', 대한교통학회지, 제24권 제2호, 대한교통학회, pp.65-78
12 Kumbhakar, S. C. and C. A. Knox Lovell(2003), 'Stochastic Frontier Analysis', Cambridge University Press
13 철도청, '각 연도 경영성적보고서'
14 Kumbhakar, S. C.(1988), 'On the Estimation of Technical and Allocative Inefficiency Using Stochastic Frontier Functions: The Case of U. S. Class Ⅰ Railroads', International Economic Review, Vol. 29, pp.727-743   DOI   ScienceOn
15 김성호(2006), '거리함수를 이용한 한국 철도산업의 생산특성 및 효율성 분석', 대한교통학회지, 제24권 제5호, 대한교통학회, pp.45-56
16 Cantos, P., J. M. Pastor and L. Serrano(2002), 'Cost and Revenue Inefficiencies in the European Railways', International Journal of Transport Economics, Vol. 29, pp.279-308   ScienceOn
17 박진경(2007), '한국과 일본 철도산업의 비용구조와 생산성 분석-철도산업의 구조개편방안 및 민영화방 안과 관련하여', 서울대학교 박사학위논문
18 Cantos, P., Jos$\acute{e}$ M. Pastor and L. Serrano(1999), 'Productivity, Efficiency and Technical Change in the European Railways: A Non-Parametric Approach', Transportation, Vol. 26, pp.337-357   DOI   ScienceOn
19 Cantos, P. and J. Maudos(2000), 'Efficiency, Technical Change and Productivity in the European Rail Sector: A Stochastic Frontier Approach', International Journal of Transport Economics, Vol. 27, pp.55-76   ScienceOn
20 Oum, T. H. and C. Yu(1994), 'Economic Efficiency of Railways and Implications for Public Policy: A Comparative Study of the OECD Countries' Railways', Journal of Transport Economics and Policy, Vol. 28, pp.121-138   ScienceOn
21 Sloboda, B. W.(2004), 'Performance Measurement of U.S. Class Ⅰ Railroads, 1980-2001', International Journal of Transport Economics, Vol. 31, pp.229-246   ScienceOn
22 Greene, W. H.(1990), 'A Gamma-distributed Stochastic Frontier Model', Journal of Econometrics, Vol. 46, pp.141-163   DOI   ScienceOn
23 Bauer, P. W.(1990), 'Recent Development in the Econometric Estimation of Frontiers', Journal of Econometrics, Vol. 46, pp.39-56   DOI   ScienceOn
24 철도청, '각 연도 철도통계연보'
25 Berger, A. N. and L. J. Mester(1997), 'Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institutions?', Journal of Banking and Finance, Vol. 21, pp.895-947   DOI   ScienceOn
26 이재훈. 정경훈(2004), '우리나라 철도산업의 효율성 분석', 한국교통연구원