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Testing for Economies of Scope in European Railways: An Efficiency Analysis

Author

Listed:
  • Christian Growitsch

    (Halle Institute for Economic Research)

  • Heike Wetzel

    (Institute of Economics, Leuphana University of Lüneburg)

Abstract

In this paper, we conduct a pan-European effciency analysis to investigate the performance of European railways with a particular focus on economies of vertical integration. We test the hypothesis that integrated railways realize economies of scope and, thus, produce railway services with a higher level of effciency. To determine whether joint or separate production is more effcient, we apply a Data Envelopment Analysis super-effciency bootstrapping model which relates the ef- ficiency for integrated production to a reference set consisting of separated firms which use a di erent production technology. We find that for a majority of European railways economies of scope exist.

Suggested Citation

  • Christian Growitsch & Heike Wetzel, 2007. "Testing for Economies of Scope in European Railways: An Efficiency Analysis," Working Paper Series in Economics 72, University of Lüneburg, Institute of Economics.
  • Handle: RePEc:lue:wpaper:72
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    References listed on IDEAS

    as
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    5. Wagner, Joachim, 2006. "International Firm Activities and Innovation: Evidence from Knowledge Production Functions for German Firms," HWWA Discussion Papers 344, Hamburg Institute of International Economics (HWWA).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Efficiency; Vertical Integraton; Railway Industry;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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