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Short-run Total Cost Change and Productivity of US Class I Railroads

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  • Siew Hoon Lim
  • C. A. Knox Lovell

Abstract

This paper examines how productivity changes contribute to short-run cost variations over time and across railroads. Using an unbalanced panel of US Class I railroad data for the period 1996-2003, decomposition models were used to attribute intertemporal and multilateral cost variations to their causal factors. We find that (i) railroads were able to reduce their physical capitals in recent years; (ii) railroads experienced technical progress over time, but they were technically and allocatively inefficient in some time periods; and (iii) the benchmarking railroads could learn from the low-cost and cost-efficient benchmark when it comes to cost savings. © 2008 LSE and the University of Bath

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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.

Volume (Year): 42 (2008)
Issue (Month): 1 (January)
Pages: 155-188

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Handle: RePEc:tpe:jtecpo:v:42:y:2008:i:1:p:155-188

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Web page: http://www.bath.ac.uk/e-journals/jtep

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Cited by:
  1. Siew Hoon Lim & C.A. Knox Lovell, 2009. "Profit and productivity of US Class I railroads," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(7), pages 423-442.

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