| Title | Performance Analysis of Operating Deficit Subsidies in Highway Motor Carrier Industry |
| Dept | IOT |
| Year | 2003 |
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| Summary | Published in April 2003 IOT SERIAL No.92-35-4168，118 pp. The Alternatives for promoting the Development of Public Transportation Sectors, a five-year project proposed by the Ministry of Transportation and Communications and approved by the Executive Yuan in 1995, has been carried out. Performance analysis of the program concerning operating deficit subsidies in highway motor carrier industry will be necessary. In this study, following the approach proposed by Fielding et al. (1987), an evaluation framework for the subsidy routes has been established. Furthermore, a non-neutral stochastic production frontier model is defined to analyze the panel data collected from bus companies, in which the technical inefficiency effects are assumed to be a function of both firm-specific and time variables. Empirical results indicate that there are high positive relationships between companies applying and government approving vehicle-km subsidies. Operating deficit subsidies have apparently increased cost efficiency and service performance. In addition, our data show that highway motor carrier industry has experienced decreasing returns to scale, enhanced technical efficiency after giving subsidy. |
| Post date | 2004/12/30 |
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