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Testing for Economies of Scope in European Railways: An Efficiency Analysis

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Christian Growitsch
Heike Wetzel

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Abstract

In this paper, we conduct a pan-European efficiency analysis to investigate the performance of European railways with a particular focus on economies of vertical integration. We test the hypothesis that integrated railways realise economies of scope and, thus, produce railway services with a higher level of efficiency. To determine whether joint or separate production is more efficient, we apply a data envelopment analysis super-efficiency bootstrapping model which relates the efficiency for integrated production to a reference set consisting of separated firms which use a different production technology. We find that for a majority of European railways, economies of scope exist. © 2009 LSE and the University of Bath

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

Volume (Year): 43 (2009)
Issue (Month): 1 (January)
Pages: 1-24
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Handle: RePEc:tpe:jtecpo:v:43:y:2009:i:1:p:1-24

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

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  1. Martin F. Quaas & Stefan Baumgärtner, 2006. "The Private and Public Insurance Value of Conservative Biodiversity Management," Working Paper Series in Economics 33, University of Lüneburg, Institute of Economics. [Downloadable!]
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This page was last updated on 2009-12-15.

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