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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
    1. Baumgärtner, Stefan & Quaas, Martin, 2005. "The private and public insurance value of conservative biodiversity management," UFZ Discussion Papers 27/2005, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    2. 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).
    3. Lena Koller & Claus Schnabel & Joachim Wagner, 2007. "Schwellenwerte im Arbeitsrecht: Höhere Transparenz und Effizienz durch Vereinheitlichung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(3), pages 242-255, August.
    4. repec:bpj:pewipo:v:8:y:2007:i:3:p:242-255:n:3 is not listed on IDEAS
    5. John T. Addison & Claus Schnabel & Joachim Wagner, 2006. "The (Parlous) State of German Unions," Working Paper Series in Economics 23, University of Lüneburg, Institute of Economics.
    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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