An Analysis of Operating Efficiency for Contracting out Public Off-Street Parking Lots- A Case Study for Taipei City

Recently, Government has adopted the contracting out policy to manage the Public Off-Street Parking Lots. There are many advantages of contracting out policy, one is to save the management cost for government, another is to upgrade better performance and higher efficiency by private firm’s manage, and in the way, it may provide better service to meet with people’s parking demands. On the other hand, to build a strategic alliance with firms also represents government’s willingness to transfer and share the operating profit from public part to private sector. In conclusions, there are three main advantages of this policy: (1) Government may save more money. (2) People may receive higher and better service. (3) Private firm may get more benefits.here are several researches from the aspects of government and people, such as the study on the government’s concern to see whether the public parking lot contracting out policy may increase government’s financial efficiency or on the people’s point of view to see whether the policy may facilitate to more convenient or not. But, there is rare research on the study from the private firm’s angles.herefore, this research is focusing on the study of the operating efficiency on the contracting out of the public off-street parking lot from the private firm’s aspects. In this way, assuming the operating cost as an input item and the revenue as an output item, and set up the contractor parking lots of Taipei City in 2007 as the research data by using the mythologies of DEA and SFA to analyze it. From the research outcome of DEA, it indicates that the contractor parking lots industry efficiency level in the Taipei City is 0.782, and it proves that there is a room of 20.8% to improve. On the other hand, from the research outcome of SFA, the contractor parking lots industry efficiency level in the Taipei City is 0.657, and the rate of technical inefficiency is 34.4%. Furthermore, from the analysis of Malmquist productivity index, it clearly shows that the productivity of the Taipei City contractor parking lots industry is declining. The outcome of both of the above-mentioned researches indicates that to cut down the labor cost is the first priority to improve the operating efficiency.