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

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Author Info
Christian Growitsch () (Halle Institute for Economic Research)
Heike Wetzel () (Institute of Economics, Leuphana University of Lüneburg)

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Abstract

In this paper, we conduct a pan-European effciency analysis to investigate the performance of European railways with a particular focus on economies of vertical integration. We test the hypothesis that integrated railways realize economies of scope and, thus, produce railway services with a higher level of effciency. To determine whether joint or separate production is more effcient, we apply a Data Envelopment Analysis super-effciency bootstrapping model which relates the ef- ficiency for integrated production to a reference set consisting of separated firms which use a di erent production technology. We find that for a majority of European railways economies of scope exist.

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Publisher Info
Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 72.

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Length: 32 pages
Date of creation: Dec 2007
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Handle: RePEc:lue:wpaper:72

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Related research
Keywords: Efficiency; Vertical Integraton; Railway Industry;

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Find related papers by JEL classification:
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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References listed on IDEAS
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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 2009-11-26.


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