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Cost Function Analysis For Transportation Modes: A Survey Of Selective Literature

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  • Rinki Sarkar

    (Delhi School of Economics)

Abstract

Cost functions as applicable to transport industries have evolved from simple analytical constructs to fairly complex structures. Salient features of the transport industry have been gradually incorporated. Theoretical properties of the cost function have been embedded into applied work, using flexible functional forms which place few apriori restrictions on the underlying production technology. Attempts have been made to represent the 'output' of a transport firm more accurately. These advances have made the interpretation of results more meaningful in relation to the economic characteristics of transportation industries, providing better tools for efficient formulation of policies towards these industries. This paper traces some of these developments since the mid-fifties. Towards this end, cost studies relating to various land-based transport modes is critically surveyed while focusing mainly on the urban bus transit sector.

Suggested Citation

  • Rinki Sarkar, 1997. "Cost Function Analysis For Transportation Modes: A Survey Of Selective Literature," Working papers 53, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:53
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