Limitations of DEA-based approach and alternative methods in the measurement and comparison of social efficiency across firms in different transport modes: An empirical study in Japan

This paper measures and compares social efficiency of railway firms and airlines in Japan’s domestic intercity travel market. Unlike other efficiency studies, the authors' input and output measures are more comprehensive because they incorporate the life-cycle CO2 emissions as an undesirable output and travelers’ time and government spending on air infrastructure as inputs. The authors use the nonparametric directional output distance function (DODF) together with the composite social efficiency index to analyze the yearly panel data of the three major railroads and two major airlines during 1999–2007. The results indicate that the railroads are more socially efficient than airlines. Furthermore, they discuss the inability of nonparametric DODF method for comparing the social efficiency of firms across modes.


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  • Accession Number: 01491493
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 3 2013 12:26PM