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Economic impacts of Swedish railway deregulation: A longitudinal study

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  • Jensen, Arne
  • Stelling, Petra
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    Abstract

    Vertical separation between infrastructure service provision and the operation of trains is one important element in the Swedish deregulation process. Another is the introduction of various forms of competition. In this paper, we study the economic development of the Swedish railway and explore if and how the deregulation has affected cost efficiency. We use a longitudinal econometric approach in our study and conclude that vertical separation raises costs, and also that the introduction of competition lowers costs. The combined effect seems to be an improvement in cost efficiency as an impact of the deregulation process. The study also gives some results on lagged relationships between output and costs in railways with mixed passenger and freight services and provides a methodological approach for causal research on the relationship between railway deregulation and costs.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.

    Volume (Year): 43 (2007)
    Issue (Month): 5 (September)
    Pages: 516-534

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    Handle: RePEc:eee:transe:v:43:y:2007:i:5:p:516-534

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    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description

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    Related research

    Keywords: Railway deregulation impact Competition and cost pressure in railways Vertical separation in railway sectors Railway cost functions Railway deregulation cost effectiveness Railway cost determinants;

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    Cited by:
    1. Nash, Chris & Nilsson, Jan-Eric & Link, Heike, 2011. "Comparing three models for introduction of competition into railways – is a Big Wolf so Bad after all?," Working papers in Transport Economics 2011:19, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    2. Fröidh, Oskar & Byström, Camilla, 2013. "Competition on the tracks – Passengers’ response to deregulation of interregional rail services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 56(C), pages 1-10.
    3. Fumitoshi Mizutani & Shuji Uranishi, 2013. "Does vertical separation reduce cost? An empirical analysis of the rail industry in European and East Asian OECD Countries," Journal of Regulatory Economics, Springer, vol. 43(1), pages 31-59, January.
    4. Matthias Finger & Christian Jaag & Markus Lang & Martin Lutzenberger & Urs Trinkner, 2009. "Bestimmung des Regulierungsbedarfs aus ökonomischer Sicht: Angemessenheit und Folgen einer funktionalen oder strukturellen Trennung von Swisscom," Studies and Reports, Swiss Economics, pages 1-92, February.

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