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Marginal Railway Infrastructure Costs in a Dynamic Context

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Abstract

In this paper, dynamic aspects of railway infrastructure operation and maintenance costs in Sweden are explored. Econometric cost functions are estimated to check the robustness of previous marginal cost estimates by introducing lags and leads of both dependent and independent variables. We find support for a forward-looking behaviour within the Swedish National Rail Administration (Banverket) as both infrastructure operation and maintenance costs are reduced prior to a major renewal. There are also indications of both lagged traffic and costs affecting the cost structure, but these results are more uncertain due to limitations in data.

Suggested Citation

  • Andersson, Mats, 2007. "Marginal Railway Infrastructure Costs in a Dynamic Context," Working Papers 2007:9, Swedish National Road & Transport Research Institute (VTI).
    • Handle: RePEc:hhs:vtiwps:2007_009
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    File URL: http://www.transportportal.se/SWoPEc/MA_MC_Dynamic.pdf
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    More about this item

    Keywords

    Railway; Infrastructure Operation; Maintenance; Marginal Costs; Dynamic Panel Data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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