Nimra NOOR,* Bilal MEHMOOD,** and Maryam WASIF*
Public transport has been a focus of financial allocations in Pakistan for which the efficiency of performance of these projects should also be brought under consideration. Accordingly, this study focus on resource allocation and its impact on transport system of the city of Lahore, by estimating the efficiency and productivity of franchise based bus service on 15 selected urban public routes of the city. Data of input and output is used from July 2013 to March 2014. Using the data envelopment analysis (DEA) the study finds relative technical efficiency scores of different routes and total factor productivity (TFP) under the first stage DEA. Further, under the second stage DEA analysis, the route-wise targets and slacks of inputs and outputs are examined. The results imply that the public transport sector of Lahore is performing satisfactorily, mainly due to the improved managerial efficiency. Based on this empirical work, recommendations have been made at the end of the study.
Key Words: Technical Efficiency, DEA, VRS, CRS, 2nd Stage DEA, Malmquist Productivity Index