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Do Competition and Ownership Matter? Evidence from Local Public Transport in Europe

Author

Listed:
  • Marcella Nicolini

    (Fondazione Eni Enrico Mattei)

  • Andrea Boitani

    (Catholic University)

  • Carlo Scarpa

    (University of Brescia and Fondazione Eni Enrico Mattei)

Abstract
This paper investigates how the ownership and the procedure for the selection of firms operating in the local public transport sector affect their productivity. In order to compare different institutional regimes, we carry out a comparative analysis of 72 companies operating in large European cities. This allows us to consider firms selected either through competitive tendering or negotiated procedures. The analysis of the data on 77 European firms over the period 1997-2006 indicates that firms operate under constant returns to scale. Retrieving the residuals we obtain a measure of total factor productivity, which we regress on firm and city characteristics. We find that when firms are totally or partially in public hands their productivity is lower. Moreover, firms selected through competitive tendering display higher total factor productivity.

Suggested Citation

  • Marcella Nicolini & Andrea Boitani & Carlo Scarpa, 2010. "Do Competition and Ownership Matter? Evidence from Local Public Transport in Europe," Working Papers 2010.9, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2010.9
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    More about this item

    Keywords

    Local Public Transport; Public Ownership; Translog Production Function;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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