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Cost And Revenue Inefficiencies In The European Railways

Author

Listed:
  • José Manuel Pastor Monsálvez

    (Instituto Valenciano de Investigaciones Económicas)

  • Lorenzo Serrano Martínez

    (Instituto Valenciano de Investigaciones Económicas)

  • Pedro Cantos

    (Universitat de València)

Abstract

This study analyses cost and revenue inefficiencies for a sample of European railway companies. On the basis of a DEA model we calculate cost and revenue inefficiencies, decomposing them into inefficiencies of a technical or allocative type. It is observed that inefficiencies in revenues are greater than those in costs, indicating that the study of inefficiencies in costs is only a partial analysis of the problem. Also, technical inefficiencies are greater than the allocative type. Finally, the most independent companies, with least external intervention in their decisions, are also the most efficient in both costs and revenue. Éste trabajo analiza las ineficiencias en costes y en ingresos de una muestra decompañías ferroviarias europeas. Los indicadores de eficiencia en costes y en ingresosse calculan utilizando la técnica DEA y se descomponen en sus en ineficiencias técnicasy asignativas. Los resultados indican que las ineficiencias en ingresos son mayores quelas ineficiencias en costes, indicando que el estudio de las ineficiencias en costesconstituye un análisis parcial del problema. Asimismo, las ineficiencias técnicas sonmayores que las de tipo asignativo. Finalmente, las compañías más independientes, conmenor intervención externa en sus decisiones, son también las mas eficientes en costes yen ingresos.

Suggested Citation

  • José Manuel Pastor Monsálvez & Lorenzo Serrano Martínez & Pedro Cantos, 2002. "Cost And Revenue Inefficiencies In The European Railways," Working Papers. Serie EC 2002-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasec:2002-10
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    References listed on IDEAS

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    Cited by:

    1. Kumbhakar, Subal & Orea, Luis & Rodríguez-Álvarez, Ana & Tsionas, Efthymos, 2003. "Estimating a Mixture of Efficiency Indices," Efficiency Series Papers 2003/08, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    2. Orea, Luis & Rodríguez-Álvarez, Ana & Kumbhakar, Subal, 2008. "Explaining Occupancy Rates in the European Railways: a Reduced-Form Approach," Efficiency Series Papers 2008/04, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    3. 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.
    4. Pavlyuk, Dmitry, 2008. "An Efficiency Analysis of European Countries' Railways," MPRA Paper 20922, University Library of Munich, Germany.
    5. Subal Kumbhakar & Luis Orea & Ana Rodríguez-Álvarez & Efthymios Tsionas, 2007. "Do we estimate an input or an output distance function? An application of the mixture approach to European railways," Journal of Productivity Analysis, Springer, vol. 27(2), pages 87-100, April.
    6. Rico Merkert, 2003. "Die Liberalisierung des schwedischen Eisenbahnwesens - Ein Beispiel vertikaler Trennung von Netz und Transportbetrieb -," Volkswirtschaftliche Diskussionsbeiträge 62, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    7. Wetzel, Heike & Growitsch, Christian, 2006. "Economies of Scope in European Railways: An Efficiency Analysis," IWH Discussion Papers 5/2006, Halle Institute for Economic Research (IWH).
    8. 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.

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