DEA-Nadaraya-Watson Two-stage Method and Urban Transit Service Efficiency Evaluation based on Nonparametric Regression Technique

In view of the problem of DEA-Tobit Two-stage method, nonparametric regression technique was applied in the second stage. By this way, the proposed method could guarantee the consistency hypothesis at both stages.And empirical analyses were carried on based on the actual transit operation datain China.The Nadaraya-Watson non-parametric regressiondemonstrates thatfiscal subsidy has a promoting effect on bus service efficiency.Furthermore, transit service efficiencydecreases withthe increase ofpopulation density andmotor vehicle ownership. In addition, the analysis also suggests that there is no clear correlation between the transit service efficiency and the travelleddistance factor.