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Cost structure and productivity growth in European railway systems

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  • Andreas Andrikopoulos
  • John Loizides

Abstract

The purpose of this paper is threefold: first, to empirically investigate the coststructure of the railway systems in ten European Countries (Belgium, Denmark, France, Germany, Greece, Italy, Luxembourg, the Netherlands, Portugal and the United Kingdom) of the European Union, second to provide measures of economies (diseconomies) of scale and fully investigate the manner by which economies of scale have affected the cost structure of the system and have been affected by the growth in input prices and technology, and third, to measure economic efficiency and identify its sources. In achieving this purpose, the translog technology has been used and the translog model was estimated using time-series data covering the period 1969-1993. Zellner's iterative method was used in estimating the translog model.

Suggested Citation

  • Andreas Andrikopoulos & John Loizides, 1998. "Cost structure and productivity growth in European railway systems," Applied Economics, Taylor & Francis Journals, vol. 30(12), pages 1625-1639.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1625-1639
    DOI: 10.1080/000368498324706
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    Cited by:

    1. Dimitris Christopoulos & John Loizides & Efthymios G. Tsionas, 2001. "Efficiency in European railways: Not as inefficient as one might think," Journal of Applied Economics, Universidad del CEMA, vol. 4, pages 63-88, May.
    2. Smith, Andrew S.J., 2012. "The application of stochastic frontier panel models in economic regulation: Experience from the European rail sector," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 503-515.
    3. Andreas A. Andrikopoulos & Dimitrios C. Gkountanis, 2011. "Issues and Models in Applied Econometrics: A partial survey," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 9(2), pages 107-165.
    4. Ana Rodríguez Álvarez & Víctor Fernández Blanco & José Baños Pino, 2005. "El efecto de la regulación sobre la eficiencia productiva: una aplicación a las compañías ferroviarias europeas," Investigaciones Economicas, Fundación SEPI, vol. 29(2), pages 351-378, May.
    5. Yu, Kemei & Wu, Jianhong & Wang, Kun & Zhang, Anming & Zheng, Shiyuan & Wang, Yixiao & Li, Hongchang, 2023. "Restructuring Chinese railways from a cost-efficient perspective—A hedonic cost function analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 177(C).
    6. Odolinski, Kristofer & Smith, Andrew S.J., 2014. "Assessing the Cost Impact of Competitive Tendering in Rail Infrastructure Maintenance Services: Evidence from the Swedish Reforms (1999 to 2011)," Working papers in Transport Economics 2014:17, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 22 May 2015.
    7. Kwon, He-Boong, 2017. "Exploring the predictive potential of artificial neural networks in conjunction with DEA in railroad performance modeling," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 159-170.
    8. Heike Wetzel, 2008. "Productivity Growth in European Railways: Technological Progress,Efficiency Change and Scale Effects," Working Paper Series in Economics 101, University of Lüneburg, Institute of Economics.
    9. Li, Hongchang & Yu, Kemei & Wang, Kun & Zhang, Anming, 2019. "Market power and its determinants in the Chinese railway industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 261-276.
    10. Müller, Gernot, 2009. "Produktivitäts- und Effizienzmessung im Eisenbahninfrastruktursektor: Methodische Grundlagen und Schätzung des Produktivitätsfortschritts für den deutschen Markt," WIK Discussion Papers 318, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    11. Louis de Grange & Rodrigo Troncoso & Nicolás Odeh & Felipe González, 2017. "Estimating the impact of incidents on urban controlled-access highways: an empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 49(18), pages 1763-1773, April.
    12. Luisa Affuso & Alvaro Angeriz & Michael Pollitt, 2009. "The Impact of Privatisation on the Efficiency of Train Operation in Britain," Working Papers 28, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    13. Andrew Smith & Phill Wheat, 2012. "Estimation of cost inefficiency in panel data models with firm specific and sub-company specific effects," Journal of Productivity Analysis, Springer, vol. 37(1), pages 27-40, February.
    14. Singh, Sanjay K., 2014. "An inquiry into the cost structure of state transport undertakings in India," Transport Policy, Elsevier, vol. 32(C), pages 1-8.

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    More about this item

    JEL classification:

    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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