The Costs of Fleet Variety

Filip Premik () and Dan Yu ()
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Filip Premik: Monash University
Dan Yu: University of Alberta

No 2026-02, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: We study how heterogeneity in capital inputs affects firm performance. Drawing on detailed data on municipal bus fleets in Poland, we exploit plausibly exogenous variation generated by public procurement and nationality coordinated sales behaviour of bus manufactures to identify the casual effects of variety fleet composition across brands and other technical dimensions. More heterogeneous fleets exhibit lower vehicle utilization and, for a fixed emphasize that the production capacity of capital depends on its internal structure, not only on its aggregate quantity or value.

Keywords: Heterogeneous capital; capital utilization; productivity; fleet compositon; organization of production (search for similar items in EconPapers)
JEL-codes: D24 L23 L62 (search for similar items in EconPapers)
Date: 2026-02
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