Abstract

This paper deals with the methods of measuring and analyzing efficiency in local public transport. We estimate a translogarithmic total cost function in order to assess the presence of scale and density economies. In particular, we consider firms heterogeneity using a quantile regression approach that allows us to analyze if such diseconomies affect only small firms or large firms too. The analysis is based on a sample of 98 Italian local transport municipal companies observed in 2002, including both specialized and mixed transit operators. Scale and density economies are found for all companies distribution, but the size of these economies varies according to company size.