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Efficiency in European railways: Not as inefficient as one might think

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Author Info
Dimitris Christopoulos () (Panteion University, Athens, Greece)
John Loizides (Athens University of Economics and Business, Athens, Greece)
Efthymios G. Tsionas () (Athens University of Economics and Business, Athens, Greece)

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Abstract

The paper studies technical inefficiency in the railway systems of ten countries of the European Union. A new approach is used which permits the disaggregation of inefficiency by factor of production to result in estimates of input-specific technical inefficiency. The cost structure is represented using a generalized McFadden flexible functional form. Policy implications and guidelines for rational decision making in the railway sector, are discussed in detail.

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File URL: http://www.cema.edu.ar/publicaciones/download/volume4/christo_tsionas.pdf
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Publisher Info
Article provided by Universidad del CEMA in its journal Journal of Applied Economics.

Volume (Year): IV (2001)
Issue (Month): (May)
Pages: 63-88
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Handle: RePEc:cem:jaecon:v:4:y:2001:n:1:p:63-88

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Related research
Keywords: technical efficiency; symmetric generalized McFadden form; flexible functional forms; duality; input-specific technical efficiency; European railways;

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Find related papers by JEL classification:
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Diewert, W E, 1971. "An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 481-507, May-June. [Downloadable!] (restricted)
  2. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July. [Downloadable!] (restricted)
  3. Ann F. Friedlaender & Ernst R. Berndt & Judy Shaw-Er Wang Chiang & Mark Showalter & Christopher A. Vellturo, 1991. "Rail Costs and Capital Adjustments in a Quasi-Regulated Environment," NBER Working Papers 3841, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January. [Downloadable!] (restricted)
    Other versions:
  5. Viton, Philip A, 1981. "A Translog Cost Function for Urban Bus Transit," Journal of Industrial Economics, Blackwell Publishing, vol. 29(3), pages 287-304, March. [Downloadable!] (restricted)
  6. McMullen, B Starr & Stanley, Linda R, 1988. "The Impact of Deregulation on the Production Structure of the Motor Carrier Industry," Economic Inquiry, Oxford University Press, vol. 26(2), pages 299-316, April.
  7. Kumbhakar, Subal C & Hjalmarsson, Lennart, 1995. "Labour-Use Efficiency in Swedish Social Insurance Offices," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 33-47, Jan.-Marc. [Downloadable!] (restricted)
  8. Hay, Donald A & Liu, Guy S, 1997. "The Efficiency of Firms: What Difference Does Competition Make?," Economic Journal, Royal Economic Society, vol. 107(442), pages 597-617, May. [Downloadable!] (restricted)
  9. Ali, Farman & Parikh, Ashok & Shah, Mir Kalan, 1996. "Measurement of economic efficiency using the behavioral and stochastic cost frontier approach," Journal of Policy Modeling, Elsevier, vol. 18(3), pages 271-287, June. [Downloadable!] (restricted)
  10. Kumbhakar, Subal C, 1989. "Estimation of Technical Efficiency Using Flexible Functional Form and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 7(2), pages 253-58, April.
  11. Hall, Robert E, 1973. "The Specification of Technology with Several Kinds of Output," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 878-92, July-Aug.. [Downloadable!] (restricted)
  12. Andrikopoulos, Andreas A & Loizides, John, 1998. "Cost Structure and Productivity Growth in European Railway Systems," Applied Economics, Taylor and Francis Journals, vol. 30(12), pages 1625-39, December. [Downloadable!] (restricted)
    Other versions:
  13. David W. Gillen & Tae Hoon Oum, 1984. "A Study of the Cost Structures of the Canadian Intercity Motor Coach Industry," Canadian Journal of Economics, Canadian Economics Association, vol. 17(2), pages 369-85, May. [Downloadable!] (restricted)
  14. Douglas W. Caves & Laurits R. Christensen & Michael W. Tretheway, 1984. "Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 471-489, Winter. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sauer, Johannes, 2004. "Rural Water Suppliers And Efficiency - Empirical Evidence From East And West Germany," IAMO Discussion Papers 14866, Institute of Agricultural Development in Central and Eastern Europe (IAMO). [Downloadable!]
  2. Sauer, J.F., 2005. "“Efficiency Flooding”: Black-Box Frontiers and Policy Implications," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(1), pages 17-52. [Downloadable!]
  3. Johannes Sauer & Klaus Frohberg & Henrich Hockmann, 2006. "Stochastic efficiency measurement: The curse of theoretical consistency," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 139-166, May. [Downloadable!] (restricted)
  4. Johannes Sauer & Klaus Frohberg, 2007. "Allocative efficiency of rural water supply – a globally flexible SGM cost frontier," Journal of Productivity Analysis, Springer, vol. 27(1), pages 31-40, February. [Downloadable!] (restricted)
Statistics
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