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Cost structure and productivity growth of the Taiwan Railway

Author

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  • Wang, Shaw-Er
  • Liao, Chun-Hsiung

Abstract

This paper studies the multi-product cost structure and productivity growth of the Taiwan Railway through the period 1991-2000. A short-run translog cost function is estimated using monthly time-series data in which pension/compensation expenses are regarded as a quasi-fixed factor, and the variables of operating characteristics for freight and passenger services are incorporated. Our results show technological change in the Taiwan Railway is not Hick's neutral, and both economies of scale and scope are present. Further, TFP growth has improved in recent years and is mainly driven by technological progress and scale economies.

Suggested Citation

  • Wang, Shaw-Er & Liao, Chun-Hsiung, 2006. "Cost structure and productivity growth of the Taiwan Railway," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(4), pages 317-339, July.
    • Handle: RePEc:eee:transe:v:42:y:2006:i:4:p:317-339
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    Citations

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    Cited by:

    1. Meng, Qiang & Wang, Xinchang, 2011. "Intermodal hub-and-spoke network design: Incorporating multiple stakeholders and multi-type containers," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 724-742, May.
    2. Aziz Kutlar & Ali Kabasakal & Murat Sarikaya, 2013. "Determination of the efficiency of the world railway companies by method of DEA and comparison of their efficiency by Tobit analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(6), pages 3575-3602, October.
    3. Ali Kabasakal & Aziz Kutlar & Murat Sarikaya, 2015. "Efficiency determinations of the worldwide railway companies via DEA and contributions of the outputs to the efficiency and TFP by panel regression," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(1), pages 69-88, March.
    4. Jorge Antunes & Goodness C. Aye & Rangan Gupta & Peter Wanke & Yong Tan, 2020. "Endogenous Long-Term Productivity Performance in Advanced Countries: A Novel Two-Dimensional Fuzzy-Monte Carlo Approach," Working Papers 2020111, University of Pretoria, Department of Economics.

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