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Home / Journal of Transport Economics and Policy (JTEP), Volume 43, Number 1

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

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Authors: Growitsch, Christian; Wetzel, Heike

Source: Journal of Transport Economics and Policy (JTEP), Volume 43, Number 1, January 2009, pp. 1-24(24)

Publisher: Journal of Transport Economics and Policy

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

Document Type: Research Article

Publication date: January 1, 2009

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