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Railway reforms: do they influence operating efficiency?

  • Mette Asmild

    ()

  • Torben Holvad

    ()

  • Jens Hougaard

    ()

  • Dorte Kronborg

    ()

This paper considers railway operations in 23 European countries during 1995-2001, where a series of reform initiatives were launched by the European Commission, and analyses whether these reform initiatives improved the operating efficiency of the railways. Efficiency is measured using Multi-directional Efficiency Analysis, which enables investigation of how railway reforms affect the inefficiencies of specific cost drivers. The main findings are that the reform initiatives generally improve operating efficiency but potentially differently for different cost drivers. Specifically, the paper provides clear empirical evidence that accounting separation is important for improving operating efficiency for both material and staff costs, whereas other reforms only influenced one of these factors.

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File URL: http://hdl.handle.net/10.1007/s11116-009-9216-x
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Article provided by Springer in its journal Transportation.

Volume (Year): 36 (2009)
Issue (Month): 5 (September)
Pages: 617-638

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Handle: RePEc:kap:transp:v:36:y:2009:i:5:p:617-638
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  1. Gertjan Driessen & Mark Lijesen & Machiel Mulder, 2006. "The impact of competition on productive efficiency in European railways," CPB Discussion Paper 71, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Torben Holvad & Jens Hougaard & Dorte Kronborg & Hans Kvist, 2004. "Measuring inefficiency in the Norwegian bus industry using multi-directional efficiency analysis," Transportation, Springer, vol. 31(3), pages 349-369, August.
  3. Pedro Cantos & José Pastor & Lorenzo Serrano, 1999. "Productivity, efficiency and technical change in the European railways: A non-parametric approach," Transportation, Springer, vol. 26(4), pages 337-357, November.
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  7. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
  8. 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.
  9. Mette Asmild & Jens Hougaard & Dorte Kronborg & Hans Kvist, 2003. "Measuring Inefficiency Via Potential Improvements," Journal of Productivity Analysis, Springer, vol. 19(1), pages 59-76, January.
  10. L. Di Pietrantonio & J. Pelkmans, 2004. "The economics of EU railway reform," Competition and Regulation in Network Industries, Intersentia, vol. 5(3), pages 295-347, September.
  11. Ivaldi, Marc & Seabright, Paul, 2003. "The Economics of Passenger Rail Transport: A Survey," IDEI Working Papers 163, Institut d'Économie Industrielle (IDEI), Toulouse.
  12. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
  13. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
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