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Railroad Restructuring in Russia and Central and Eastern Europe: One Solution for All Problems?

Author

Listed:
  • Russell Pittman

    (Antitrust Division, US Department of Justice)

  • Sergei Guriev

    (New Economic School)

  • Guido Friebel

    (University of Toulouse)

  • Anna Tomova

    (University of Zilina)

  • Elizaveta Cheviakhova

    (Boston College)

Abstract

Railways restructuring takes place under very different circumstances and with very different goals in Western Europe, Central and Eastern Europe, and Russia. Observed improvements in productivity associated with vertical access and vertical separation in Western Europe are not certain to be replicated following similar restructuring in transition economies, especially if one takes account of the much higher shadow price on government subsidies in the latter. This paper describes in detail the current and proposed reforms in the railways of Central and Eastern Europe and Russia, analyzes the likely outcomes of reforms in the special economic, regulatory, and legal environments of these countries, and presents an alternative proposal for restructuring in Russia.

Suggested Citation

  • Russell Pittman & Sergei Guriev & Guido Friebel & Anna Tomova & Elizaveta Cheviakhova, 2005. "Railroad Restructuring in Russia and Central and Eastern Europe: One Solution for All Problems?," Industrial Organization 0504021, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0504021
    Note: Type of Document - doc; pages: 36
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    References listed on IDEAS

    as
    1. Ivaldi Marc & Mccullough Gerard, 2008. "Subadditivity Tests for Network Separation with an Application to U.S. Railroads," Review of Network Economics, De Gruyter, vol. 7(1), pages 1-13, March.
    2. Antonio Estache & Andrea Goldstein & Russell Pittman, 2001. "Privatization and Regulatory Reform in Brazil: The Case of Freight Railways," Journal of Industry, Competition and Trade, Springer, vol. 1(2), pages 203-235, June.
    3. Ivaldi, M & McCullough, G J, 2001. "Density and Integration Effects on Class I U.S. Freight Railroads," Journal of Regulatory Economics, Springer, vol. 19(2), pages 161-182, March.
    4. MacDonald, James M, 1989. "Railroad Deregulation, Innovation, and Competition: Effects of the Staggers Act on Grain Transportation," Journal of Law and Economics, University of Chicago Press, vol. 32(1), pages 63-95, April.
    5. Christian Growitsch & Heike Wetzel, 2006. "Economies of Scope in European Railways: An Efficiency Analysis," Working Paper Series in Economics 29, University of Lüneburg, Institute of Economics.
    6. Guido Friebel & Marc Ivaldi & Catherine Vibes, 2010. "Railway (De)Regulation: A European Efficiency Comparison," Economica, London School of Economics and Political Science, vol. 77(305), pages 77-91, January.
    7. James M. MacDonald, 1987. "Competition and Rail Rates for the Shipment of Corn, Soybeans, and Wheat," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 151-163, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mizutani, Fumitoshi & Uranishi, Shuji, 2020. "An analysis of the inter-effect of structural reforms and rail mode share," Research in Transportation Economics, Elsevier, vol. 81(C).
    2. Russell Pittman, 2007. "Make or buy on the Russian railway? Coase, Williamson, and Tsar Nicholas II," Economic Change and Restructuring, Springer, vol. 40(3), pages 207-221, September.
    3. Hall, Derek, 2010. "Transport geography and new European realities: a critique," Journal of Transport Geography, Elsevier, vol. 18(1), pages 1-13.
    4. Pittman, Russell, 2007. "Options for Restructuring the State-Owned Monopoly Railway," Research in Transportation Economics, Elsevier, vol. 20(1), pages 179-198, January.
    5. Badura, Ondřej & Melecký, Aleš & Melecký, Martin, 2023. "Liberalizing passenger rail: The effect of competition on local unemployment," Economics of Transportation, Elsevier, vol. 36(C).
    6. Hella Engerer, 2011. "Liberalization of Infrastructures in Russia," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 25, Edward Elgar Publishing.
    7. Allen, John G. & Newmark, Gregory L., 2021. "Access protocols for railroads: Reframing the infrastructure separation debate," Research in Transportation Economics, Elsevier, vol. 89(C).
    8. Pittman, Russell, 2011. "Risk-averse restructuring of freight railways in China," Utilities Policy, Elsevier, vol. 19(3), pages 152-160.
    9. Tomeš, Zdeněk & Kvizda, Martin & Nigrin, Tomáš & Seidenglanz, Daniel, 2014. "Competition in the railway passenger market in the Czech Republic," Research in Transportation Economics, Elsevier, vol. 48(C), pages 270-276.
    10. Poinsot, Philippe, 2016. "Jules Dupuit And The Railroads: What Is The Role Of The State?," Journal of the History of Economic Thought, Cambridge University Press, vol. 38(2), pages 189-209, June.
    11. Russell Pittman & Oana Diaconu & Emanual Šip & Anna Tomová & Jerzy Wronka, 2007. "Will the Train Ever Leave the Station? The Private Provision of Freight Railway Service in Russia and Central and Eastern Europe," EAG Discussions Papers 200705, Department of Justice, Antitrust Division.
    12. Avdasheva, Svetlana & Goreyko, Nadezhda & Pittman, Russell, 2011. "Abuse of collective dominance under the competition law of the Russian Federation," MPRA Paper 33742, University Library of Munich, Germany.

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    More about this item

    Keywords

    railway; restructuring; Russia; Central and Eastern Europe; transition; vertical separation;
    All these keywords.

    JEL classification:

    • L - Industrial Organization

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