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Testing for Economies of Scope in European Railways: An Efficiency Analysis

  • Christian Growitsch

    ()

    (Halle Institute for Economic Research)

  • Heike Wetzel

    ()

    (Institute of Economics, Leuphana University of Lüneburg)

In this paper, we conduct a pan-European effciency analysis to investigate the performance of European railways with a particular focus on economies of vertical integration. We test the hypothesis that integrated railways realize economies of scope and, thus, produce railway services with a higher level of effciency. To determine whether joint or separate production is more effcient, we apply a Data Envelopment Analysis super-effciency bootstrapping model which relates the ef- ficiency for integrated production to a reference set consisting of separated firms which use a di erent production technology. We find that for a majority of European railways economies of scope exist.

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Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 72.

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Length: 32 pages
Date of creation: Dec 2007
Date of revision:
Handle: RePEc:lue:wpaper:72
Contact details of provider: Web page: http://leuphana.de/institute/ivwl.html

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