Regulation and cost efficiency in the European railways industry

Miguel Urdánoz () and Catherine Vibes

Journal of Productivity Analysis, 2013, vol. 39, issue 3, 217-230

Abstract: The objective of this article is to analyze European railways’ incentives to improve efficiency in the recent liberalization context. We build and estimate a structural model accounting for regulatory pressures faced by the firms. Our model includes demand equations, capacity constraints and a cost function, in which are specified an exogenous technical efficiency component and an endogenous cost reducing effort parameter. We find a significant positive effect of implementing the reforms on cost reducing activities, and a smaller cost of effort for firms choosing a more advanced separation of infrastructure from operation activities. Copyright Springer Science+Business Media, LLC 2013

Keywords: Cost efficiency; Asymmetric information; Network industries; Passenger and freight traffic; L92; L43; L51; C23 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:jproda:v:39:y:2013:i:3:p:217-230

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DOI: 10.1007/s11123-012-0284-0

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