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Efficiency in European Railways: Not as Inefficient as One Might Think

Author

Listed:
  • Dimitris Christopoulos
  • John Loizides
  • Efthymios G. Tsionas

Abstract

The paper studies technical inefficiency in the railway systems of ten countries of the European Union. A new approach is used which permits the disaggregation of inefficiency by factor of production to result in estimates of input-specific technical inefficiency. The cost structure is represented using a generalized McFadden flexible functional form. Policy implications and guidelines for rational decision making in the railway sector, are discussed in detail.

Suggested Citation

  • Dimitris Christopoulos & John Loizides & Efthymios G. Tsionas, 2001. "Efficiency in European Railways: Not as Inefficient as One Might Think," Journal of Applied Economics, Taylor & Francis Journals, vol. 4(1), pages 63-88, May.
    • Handle: RePEc:taf:recsxx:v:4:y:2001:i:1:p:63-88
    DOI: 10.1080/15140326.2001.12040558
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    Citations

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    Cited by:

    1. Johannes Sauer & Klaus Frohberg, 2007. "Allocative efficiency of rural water supply – a globally flexible SGM cost frontier," Journal of Productivity Analysis, Springer, vol. 27(1), pages 31-40, February.
    2. repec:fpb:wpaper:98 is not listed on IDEAS
    3. Jan van der Linden, 2005. "Planning Paper 98 - Réforme de marché dans les industries de réseau en Belgique [Planning Paper 98 - Markthervorming in netwerkindustrieën in België]," Planning Papers 98, Federal Planning Bureau, Belgium.
    4. Orea, Luis & Rodríguez-Álvarez, Ana & Kumbhakar, Subal, 2008. "Explaining Occupancy Rates in the European Railways: a Reduced-Form Approach," Efficiency Series Papers 2008/04, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    5. Sauer, Johannes, 2004. "Rural Water Suppliers And Efficiency - Empirical Evidence From East And West Germany," IAMO Discussion Papers 14866, Institute of Agricultural Development in Transition Economies (IAMO).
    6. Bogart, Dan, 2010. "A global perspective on railway inefficiency and the rise of state ownership, 1880-1912," Explorations in Economic History, Elsevier, vol. 47(2), pages 158-178, April.
    7. Sauer, J.F., 2005. "“Efficiency Flooding”: Black-Box Frontiers and Policy Implications," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(1), pages 17-52.
    8. Ana Rodríguez Álvarez & Víctor Fernández Blanco & José Baños Pino, 2005. "El efecto de la regulación sobre la eficiencia productiva: una aplicación a las compañías ferroviarias europeas," Investigaciones Economicas, Fundación SEPI, vol. 29(2), pages 351-378, May.
    9. Johannes Sauer & Klaus Frohberg & Henrich Hockmann, 2006. "Stochastic efficiency measurement: The curse of theoretical consistency," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 139-166, May.
    10. Fumitoshi Mizutani & Shuji Uranishi, 2013. "Does vertical separation reduce cost? An empirical analysis of the rail industry in European and East Asian OECD Countries," Journal of Regulatory Economics, Springer, vol. 43(1), pages 31-59, January.

    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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