On the Wrong Track? An Analysis of the Suitability of Contracting Out for Rail Track Maintenance

Richard Denniss and Phillip Toner
Additional contact information
Richard Denniss: University of Newcastle
Phillip Toner: University of Newcastle

Economic Analysis and Policy, 1999, vol. 29, issue 2, 117-131

Abstract: This article critically evaluates the arguments advanced to support the extension of competitive tendering (otherwise known as contracting-out) to rail track maintenance within the corporatised NSW rail industry. It is argued that the economic characteristics of track maintenance are such that focusing on short-term cost minimisation may lead to reduced efficiency from a whole-of-government and economy wide perspective. Issues of equity are also considered, particularly in relation to increases in unemployment in regional areas. It is concluded that the adoption of a wider perspective, and a wider definition of efficiency than short-term cost minimisation, substantially reduces the desirability of contracting out.!! 2 downloads: http://www.eap-journal.com.au/download.php?file=359 and http://www.eap-journal.com.au/download.php?file=360

Keywords: Contracting Out; Rail (search for similar items in EconPapers)
JEL-codes: L24 L92 (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592699500167
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:29:y:1999:i:2:p:117-131

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().