Railroad Property Valuation Using Data Envelopment Analysis

Donald L. Adolphson, Gary C. Cornia and Lawrence C. Walters
Additional contact information
Donald L. Adolphson: Graduate School of Management, Brigham Young University, Provo, Utah 84602
Gary C. Cornia: Graduate School of Management, Brigham Young University, Provo, Utah 84602
Lawrence C. Walters: Political Science Department, Brigham Young University, Provo, Utah 84602

Interfaces, 1989, vol. 19, issue 3, 18-26

Abstract: Railroad companies in the United States pay hundreds of millions of dollars in property tax each year. Railroad and tax officials often disagree about the appraisal methodology as well as the appraised value of railroads. A frequent area of disagreement is in the measurement of obsolescence, defined as the reduction in value due to changing economic conditions or design limitations. Current methods of measuring obsolescence in railroads systematically overestimate obsolescence. Data envelopment analysis (DEA) can be used to obtain a better measure of obsolescence. The states of Utah and Wisconsin have adopted the DEA method of measuring obsolescence.

Keywords: transportation: rail; finance: taxation (search for similar items in EconPapers)
Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://dx.doi.org/10.1287/inte.19.3.18 (application/pdf)

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:inm:orinte:v:19:y:1989:i:3:p:18-26

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().