IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Does vertical separation reduce cost? An empirical analysis of the rail industry in European and East Asian OECD Countries

  • Fumitoshi Mizutani

    ()

  • Shuji Uranishi

    ()

The main purpose of this study is to analyze structural separation policies, especially vertical (i.e. operation-infrastructure) and horizontal (i.e. passenger-freight service) separation. Using the total cost function of a railway organization, we evaluate whether or not vertical separation and/or horizontal separation can reduce costs. For this analysis, we selected 30 railway organizations in 23 European and East Asian OECD countries over 14 years, from 1994 to 2007. Our findings show that horizontal separation reduces railway cost. As for vertical separation, effects change according to the train density of a railway organization. With lower train density, vertical separation tends to reduce cost, while with higher train density vertical separation increases cost. Copyright Springer Science+Business Media, LLC 2013

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://hdl.handle.net/10.1007/s11149-012-9193-4
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 43 (2013)
Issue (Month): 1 (January)
Pages: 31-59

as
in new window

Handle: RePEc:kap:regeco:v:43:y:2013:i:1:p:31-59
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100298

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Savage, Ian, 1997. "Scale economies in United States rail transit systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 31(6), pages 459-473, November.
  2. Fumitoshi Mizutani & Hideo Kozumi & Noriaki Matsushima, 2009. "Does yardstick regulation really work? Empirical evidence from Japan’s rail industry," Journal of Regulatory Economics, Springer, vol. 36(3), pages 308-323, December.
  3. Dimitris Christopoulos & John Loizides & Efthymios G. Tsionas, 2001. "Efficiency in European railways: Not as inefficient as one might think," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 63-88, May.
  4. Buehler, Stefan & Schmutzler, Armin & Benz, Men-Andri, 2004. "Infrastructure quality in deregulated industries: is there an underinvestment problem?," International Journal of Industrial Organization, Elsevier, vol. 22(2), pages 253-267, February.
  5. Christian Growitsch & Heike Wetzel, 2007. "Testing for Economies of Scope in European Railways: An Efficiency Analysis," Working Paper Series in Economics 72, University of Lüneburg, Institute of Economics.
  6. Ivaldi, M. & McCullough, G., 1999. "Density and Integration Effects on Class I U.S. Freight Railroads," Papers 99.526, Toulouse - GREMAQ.
  7. John D. Bitzan & Theodore E. Keeler, 2003. "Productivity Growth and Some of Its Determinants in the Deregulated U.S. Railroad Industry," Southern Economic Journal, Southern Economic Association, vol. 70(2), pages 232-253, October.
  8. Loizides, John & Tsionas, Efthymios G., 2002. "Productivity growth in European railways: a new approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 36(7), pages 633-644, August.
  9. Lawrence W. Lan & Erwin T. J. Lin, 2006. "Performance Measurement for Railway Transport: Stochastic Distance Functions with Inefficiency and Ineffectiveness Effects," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 40(3), pages 383-408, September.
  10. Ivaldi, Marc & McCullough, Gerard, 2004. "Subadditivity Tests for Network Separation with an Application to US Railroads," CEPR Discussion Papers 4392, C.E.P.R. Discussion Papers.
  11. John D. Bitzan, 2003. "Railroad Costs and Competition: The Implications of Introducing Competition to Railroad Networks," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 37(2), pages 201-225, May.
  12. Fumitoshi Mizutani, 2004. "Privately Owned Railways' Cost Function, Organization Size and Ownership," Journal of Regulatory Economics, Springer, vol. 25(3), pages 297-322, 05.
  13. Cantos, Pedro & Maudos, Joaqui­n, 2001. "Regulation and efficiency: the case of European railways," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(5), pages 459-472, June.
  14. Jensen, Arne & Stelling, Petra, 2007. "Economic impacts of Swedish railway deregulation: A longitudinal study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(5), pages 516-534, September.
  15. Bitzan, John D & Keeler, Theodore E, 2007. "Economies of Density and Regulatory Change in the U.S. Railroad Freight Industry," Journal of Law and Economics, University of Chicago Press, vol. 50(1), pages 157-79, February.
  16. Mehdi Farsi & Massimo Filippini & William Greene, 2005. "Efficiency Measurement in Network Industries: Application to the Swiss Railway Companies," Journal of Regulatory Economics, Springer, vol. 28(1), pages 69-90, 07.
  17. Russell Pittman, 2003. "Vertical Restructuring (or Not) of the Infrastructure Sectors of Transition Economies," Journal of Industry, Competition and Trade, Springer, vol. 3(1), pages 5-26, March.
  18. Luisa Affuso & David Newbery, 2002. "The Impact of Structural and Contractual Arrangements on a Vertically Separated Railway," The Economic and Social Review, Economic and Social Studies, vol. 33(1), pages 83-92.
  19. Atkinson, Scott E & Halvorsen, Robert, 1984. "Parametric Efficiency Tests, Economies of Scale, and Input Demand in U.S. Electric Power Generation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(3), pages 647-62, October.
  20. Mancuso, Paolo & Reverberi, Pierfrancesco, 2003. "Operating costs and market organization in railway services. The case of Italy, 1980-1995," Transportation Research Part B: Methodological, Elsevier, vol. 37(1), pages 43-61, January.
  21. Guido Friebel & Marc Ivaldi & Catherine Vibes, 2010. "Railway (De)Regulation: A European Efficiency Comparison," Economica, London School of Economics and Political Science, vol. 77(305), pages 77-91, 01.
  22. Mizutani, Fumitoshi & Shoji, Kenichi, 2004. "Rail operation-infrastructure separation: the case of Kobe rapid transit railway," Transport Policy, Elsevier, vol. 11(3), pages 251-263, July.
  23. Nick Wills-Johnson, 2008. "Separability and Subadditivity in Australian Railways," The Economic Record, The Economic Society of Australia, vol. 84(264), pages 95-108, 03.
  24. Fumitoshi Mizutani & Kiyoshi Nakamura, 2004. "The Japanese Experience with Railway Restructuring," NBER Chapters, in: Governance, Regulation, and Privatization in the Asia-Pacific Region, NBER East Asia Seminar on Economics, Volume 12, pages 305-342 National Bureau of Economic Research, Inc.
  25. Jensen, Arne, 1998. "Competition in railway monopolies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 34(4), pages 267-287, December.
  26. Pittman Russell, 2005. "Structural Separation to Create Competition? The Case of Freight Railways," Review of Network Economics, De Gruyter, vol. 4(3), pages 1-16, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:kap:regeco:v:43:y:2013:i:1:p:31-59. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)

or (Christopher F. Baum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.