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An Efficiency Analysis of European Countries' Railways

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  • Pavlyuk, Dmitry

Abstract

This study uses stochastic frontier analysis for estimating efficiencies of railways systems in European countries. We consider railways as a system which uses its infrastructure (length of lines worked, numbers of cars and wagons, staff strength) and a scale of market (number of habitants and tourists) for transporting passengers and freights. We estimate efficiencies of freight and passenger transportations separately on the base of different models. We use the database provided by International Union of Railways, which includes annual statistical data about biggest European railways companies from 1997 to 2006 to estimate model parameters. Railways systems show huge variations in technical efficiency between different countries and also between freight and passenger transportation within the same country. The study also contains the analysis of dependencies between calculated railways efficiency estimates and popular economic indicators.

Suggested Citation

  • Pavlyuk, Dmitry, 2008. "An Efficiency Analysis of European Countries' Railways," MPRA Paper 20922, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:20922
    as

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    References listed on IDEAS

    as
    1. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    2. 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).
    3. Mette Asmild & Torben Holvad & Jens Hougaard & Dorte Kronborg, 2009. "Railway reforms: do they influence operating efficiency?," Transportation, Springer, vol. 36(5), pages 617-638, September.
    4. Stevenson, Rodney E., 1980. "Likelihood functions for generalized stochastic frontier estimation," Journal of Econometrics, Elsevier, vol. 13(1), pages 57-66, May.
    5. Heike Wetzel, 2008. "European Railway Deregulation: The Influence of Regulatory and Environmental Conditions on Efficiency," Working Paper Series in Economics 86, 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

    stochastic frontier; efficiency; railway systems;
    All these keywords.

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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