Measuring the Cost Efficiency of Urban Rail Systems<BR> An International Comparison Using DEA and Tobit Models

Understanding factors driving the operational efficiency of urban rail systems and providing an evaluation of relative efficiency internationally is the purpose of this paper. Two-stage DEA models explore determinants of technical, allocative, and cost efficiency in twenty international urban rail systems (2009-11). This identifies systems with superior overall efficiency (for example, Hong Kong), with others performing better in technical efficiency than allocative and cost efficiency (for example, Sydney). Diseconomies of scale are identified for some systems (for example, Sydney). The number of stations significantly influences technical efficiency, with the key determinant of allocative and cost efficiency being population density. © 2015 LSE and the University of Bath