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Estimating Marginal Costs for the Austrian Railway System

  • Gerhard Munduch


    (Department of Economics, Vienna University of Economics & B.A.)

  • Alexander Pfister


    (Department of Economics, Vienna University of Economics & B.A.)

  • Leopold Sögner


    (Department of Economics, Vienna University of Economics & B.A.)

  • Alfred Stiassny


    (Department of Economics, Vienna University of Economics & B.A.)

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    This article presents an econometric analysis of the maintenance costs for the Austrian railway system. The data contain observations of track maintenance costs from 1998 to 2000. Our analysis identifies the cost driving factors in order to determine estimates of marginal costs, as required by the infrastructure provision principles of the European Union. The analysis identifies the variables "track length" and "transported gross-tons" as the principal cost determinants. Furthermore, we observe that total costs as well as marginal costs increase with (i) a high proportion of the track occupied by train stations, (ii) the number of switches within a track, (iii) narrow bends, and (iv) considerable slopes. Moreover average as well as marginal costs for secondary lines are significantly higher than for main lines.

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    Paper provided by Vienna University of Economics and Business, Department of Economics in its series Department of Economics Working Papers with number wuwp078.

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    Date of creation: Feb 2002
    Date of revision:
    Handle: RePEc:wiw:wiwwuw:wuwp078
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    1. Kessides, Ioannis N. & Willig, Robert D., 1995. "Restructuring regulation of the rail industry for the public interest," Policy Research Working Paper Series 1506, The World Bank.
    2. Johansson, Per & Nilsson, Jan-Eric, 2004. "An economic analysis of track maintenance costs," Transport Policy, Elsevier, vol. 11(3), pages 277-286, July.
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