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Comparing the Costs of Vertical Separation, Integration, and Intermediate Organisational Structures in European and East Asian Railways

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  • Fumitoshi Mizutani
  • Andrew Smith
  • Chris Nash
  • Shuji Uranishi

Abstract

This is the first study in the academic literature to examine, using econometric methods, the cost impacts of three different approaches to structuring railway systems: vertical separation, vertical integration, and the intermediate holding company model. Our analysis is based on a panel of European and East Asian railways (1994-2010). We find that the optimal railway structure depends on the intensity and type of traffic running on the network. Our research suggests that, at least on cost grounds, countries should be free to choose between vertical integration, the holding company model, or vertical separation. © 2015 LSE and the University of Bath

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  • Fumitoshi Mizutani & Andrew Smith & Chris Nash & Shuji Uranishi, 2015. "Comparing the Costs of Vertical Separation, Integration, and Intermediate Organisational Structures in European and East Asian Railways," Journal of Transport Economics and Policy, University of Bath, vol. 49(3), pages 496-515, July.
  • Handle: RePEc:tpe:jtecpo:v:49:y:2015:i:3:p:496-515
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    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 & 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.
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    7. 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, January.
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    1. repec:eee:trapol:v:60:y:2017:i:c:p:143-151 is not listed on IDEAS
    2. José A. Gómez-Ibáñez, 2016. "Open Access to Infrastructure Networks: The Experience of Railroads," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 49(2), pages 311-345, September.

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