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Railway (De) Regulation : A European Efficiency Comparison

  • Friebel, Guido
  • Ivaldi, Marc
  • Vibes, Catherine

We estimate the effects of reforms on railroad efficiency in Europe by using a new panel data set that covers most EU countries over a period of more than 20 years. A production frontier model finds that efficiency increases when reforms such as third-party network access, introduction of an independent regulator, and vertical separation are implemented. However, the reform effects depend on sequencing: introduction of multiple reforms in a package has negative effects, while sequential reforms improve efficiency. We also show that our results are robust against potential problems of endogeneity. Copyright (c) The London School of Economics and Political Science 2008.

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Paper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 221.

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Date of creation: 2003
Date of revision: 2007
Publication status: Published in Economica, vol. 77, n°305, 2010, p. 77-91.
Handle: RePEc:ide:wpaper:559
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  1. Coelli, Tim & Perelman, Sergio, 1999. "A comparison of parametric and non-parametric distance functions: With application to European railways," European Journal of Operational Research, Elsevier, vol. 117(2), pages 326-339, September.
  2. 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.
  3. Ng, Charles K & Seabright, Paul, 2001. "Competition, Privatisation and Productive Efficiency: Evidence from the Airline Industry," Economic Journal, Royal Economic Society, vol. 111(473), pages 591-619, July.
  4. Gathon, H.-J. & Pestieau, P., . "Decomposing efficiency into its managerial and its regulatory components: The case of European railways," CORE Discussion Papers RP 1133, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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