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Testing for economies of scope in European railways: An efficiency analysis

  • 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 realize 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.

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Author:Christian GrowitschGND, Heike Wetzel
Series (Serial Number):University of Lüneburg Working paper series in economics (72)
Document Type:ResearchPaper
Year of Completion:2007
Date of Publication (online):2008/01/11
Release Date:2008/01/11
Tag:Efficiency; Railway Industry; Vertical Integration
GND Keyword:Effizienz; Vertikale Integration; Eisenbahn; Industrie
Institutes:Universität / Frühere Fachbereiche
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft