Efficiency among private railway companies in a weakly regulated system: the case of Britain's railways in 1893-1912
AbstractThis paper uses a stochastic cost frontier model to investigate the efficiency of Britain’s private railways during the period 1893-1912. We find that there was substantial inefficiency in the industry with no sign of reduction over time. Our main conclusion is that principal agent problems were pervasive in railway management at this time. Our results suggest that private ownership per se is not sufficient to promote efficiency in the railway industry; it should be supported by competition for franchises and price-capping regulation as in the 1990s.
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Bibliographic InfoPaper provided by London School of Economics and Political Science, Department of Economic History in its series Economic History Working Papers with number 22552.
Length: 37 pages
Date of creation: Feb 2005
Date of revision:
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Find related papers by JEL classification:
- N0 - Economic History - - General
- L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
- B1 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
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Economic History Working Papers
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