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Estimating the marginal maintenance cost of rail infrastructure usage in Sweden; does more data make a difference?

Kristofer Odolinski () and Jan-Eric Nilsson ()
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Kristofer Odolinski: VTI, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Jan-Eric Nilsson: VTI, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden

No 2016:27, Working papers in Transport Economics from CTS - Centre for Transport Studies Stockholm (KTH and VTI)

Abstract: This paper updates knowledge about the marginal cost of railway maintenance. Using a panel dataset comprising 16 years, we test whether more data makes a difference to conclusions. In contrast to previous estimates using a shorter panel, maintenance costs are now demonstrated to exhibit a positive dynamic effect; an increase in maintenance cost during one year indicates the need for more maintenance also the next year. Moreover, the marginal cost from the dynamic model is larger than its static counterpart. We conclude that the use of dynamic models on longer time series may have charging implications in several EU member states, considering that their track access charges are based on econometric studies that use static models and short panel datasets.

Keywords: Marginal cost; Rail infrastructure; Maintenance; Dynamic model; Track access charges (search for similar items in EconPapers)
JEL-codes: L92 R48 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2016-12-09, Revised 2017-05-13
New Economics Papers: this item is included in nep-eur, nep-reg, nep-tre and nep-ure
Note: Published in Economics of Transportation, Volume 10, June 2017, Pages 8-17.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published as Odolinski, Kristofer and Jan-Eric Nilsson, 'Estimating the marginal maintenance cost of rail infrastructure usage in Sweden; does more data make a difference?' in Economics of Transportation, 2017, pages 8-17.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:ctswps:2016_027

DOI: 10.1016/j.ecotra.2017.05.001

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