The Impact of Privatisation on the Efficiency of Train Operation in Britain
Twenty-five train operating companies (TOCs) were created between 1994-1997, as part of the restructuring process of the railway industry in Great Britain. The TOCs operate monopoly franchises for the provision of passenger rail services over certain routes - some of which continue to receive government subsidies. This paper investigates how the efficiency of these train operating companies evolved prior to the October 2000 Hatfield crash (which caused significant disruption to the network) using data envelopment analysis and stochastic frontier analysis. Our data allows us to look at the relative efficiency and productivity through the privatisation, to control the efficiency scores for environmental data and to correlate these results with safety and quality indicators. The analysis sheds some light on the successes and failures of the UK’s most controversial privatisation to date.
|Date of creation:||Apr 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.busman.qmul.ac.uk/research/cgr/index.html
More information through EDIRC
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.:
- Andrikopoulos, A.A. & Loizides, J., 1997.
"Cost Structure and Productivity Growth in European Railway System,"
Athens University of Economics and Business
97-03, Athens University of Economics and Business, Department of International and European Economic Studies.
- Andreas Andrikopoulos & John Loizides, 1998. "Cost structure and productivity growth in European railway systems," Applied Economics, Taylor & Francis Journals, vol. 30(12), pages 1625-1639.
- Andrikopoulos, A.A. & Loizides, J., 1997. "Cost Structure and Productivity Growth in European Railway System," DEOS Working Papers 97-03, Athens University of Economics and Business.
- Mehdi Farsi & Massimo Filippini & William Greene, 2005.
"Application of Panel Data Models in Benchmarking Analysis of the Electrivity Distribution Sector,"
CEPE Working paper series
05-39, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Mehdi Farsi & Massimo Filippini & William Greene, 2006. "Application Of Panel Data Models In Benchmarking Analysis Of The Electricity Distribution Sector ," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(3), pages 271-290, 09.
- Caves, Douglas W & Christensen, Laurits R & Swanson, Joseph A, 1981. "Economic Performance in Regulated and Unregulated Environments: A Comparison of U.S. and Canadian Railroads," The Quarterly Journal of Economics, MIT Press, vol. 96(4), pages 559-81, November.
- Perelman, Sergio & Pestieau, Pierre, 1988. "Technical performance in public enterprises : A comparative study of railways and postal services," European Economic Review, Elsevier, vol. 32(2-3), pages 432-441, March.
- Caves, Douglas W & Christensen, Laurits R, 1980. "The Relative Efficiency of Public and Private Firms in a Competitive Environment: The Case of Canadian Railroads," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 958-76, October.
- Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
- Diewert, Erwin, 2007. "Index Numbers," Economics working papers diewert-07-01-03-08-17-23, Vancouver School of Economics, revised 31 Jan 2007.
- 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.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Oum, Tae H. & Tretheway, Michael W. & Waters, W. G., 1992. "Concepts, methods and purposes of productivity measurement in transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 26(6), pages 493-505, November.
- DEPRINS, Dominique & SIMAR, Léopold, . "Estimating technical inefficiencies with correction for environmental conditions with an application to railway companies," CORE Discussion Papers RP -834, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Affuso, L. & Masson, J. & Newbery, D.M., 2000. "Comparing Investment on New Transport Infrastructure: Roads vs. Railways?," Cambridge Working Papers in Economics 0021, Faculty of Economics, University of Cambridge.
- Ann F. Friedlaender & Ernst R. Berndt & Judy Shaw-Er Wang Chiang & Mark Showalter & Christopher A. Vellturo, 1991. "Rail Costs and Capital Adjustments in a Quasi-Regulated Environment," NBER Working Papers 3841, National Bureau of Economic Research, Inc.
- 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.
- Caves, Douglas W & Christensen, Laurits R & Swanson, Joseph A, 1981. "Productivity Growth, Scale Economies, and Capacity Utilization in U.S. Railroads, 1955-74," American Economic Review, American Economic Association, vol. 71(5), pages 994-1002, December.
- Michael G. Pollitt & Andrew S. J. Smith, 2002.
"The restructuring and privatisation of British Rail: was it really that bad?,"
Institute for Fiscal Studies, vol. 23(4), pages 463-502, December.
- Pollitt, M. & Smith, A.S.J., 2001. "The Restructuring and Privatisation of British Rail: Was it really that bad?," Cambridge Working Papers in Economics 0118, Faculty of Economics, University of Cambridge.
- Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
- Wilson, Wesley W, 1997. "Cost Savings and Productivity in the Railroad Industry," Journal of Regulatory Economics, Springer, vol. 11(1), pages 21-40, January.
When requesting a correction, please mention this item's handle: RePEc:cgs:wpaper:28. 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: (Pedro S. Martins)
If references are entirely missing, you can add them using this form.