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Productivity Growth in European Railways: Technological Progress,Efficiency Change and Scale Effects

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  • Heike Wetzel

    (Institute of Economics, University of Lüneburg)

Abstract

This paper analyzes the performance of the European railway sector in the period of deregulation (1990-2005). Using a stochastic frontier panel data model that controls for unobserved heterogeneity a multiple-output multiple input distance function model is estimated in order to evaluate the sources of productivity growth: technological progress, technical efficiency change and scale effects. The results indicate that technology improvements were by far the most important driver of productivity growth, followed by gains in technical efficiency, and to a lesser extent by exploitation of scale economies. Overall, we find an average productivity growth of 39 per cent within the sample period.

Suggested Citation

  • Heike Wetzel, 2008. "Productivity Growth in European Railways: Technological Progress,Efficiency Change and Scale Effects," Working Paper Series in Economics 101, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:101
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    References listed on IDEAS

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    Cited by:

    1. Kellermann, Magnus A., 2015. "Total Factor Productivity Decomposition and Unobserved Heterogeneity in Stochastic Frontier Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-25, April.

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    More about this item

    Keywords

    European railways; Deregulation; Stochastic frontier analysis; Total factor productivity;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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