Public transit performance: what does one learn from frontier studies?

This paper provides a comprehensive survey of the literature on production and cost frontiers for public transit operators, and it evaluates the contr ibutions of frontier analysis to the understanding of the performance of th e public transport sector. The authors first succinctly contrast best pract ice (or frontier) and average practice specifications of technology. They a lso review relevant performance indicators and the methods to measure them. Next, the existing frontier studies measuring urban transit performance ar e systematically summarized and critically assessed. It is shown that the o rganization of the market, contract design, the degree and nature of the re gulatory regime, and the characteristics of the network being served are al l important determinants of inefficiency. However, although the frontier li terature has substantially contributed to the knowledge of urban transit te chnologies and the determinants of performance, it is found that many impor tant issues remain unresolved.