Cost Efficiency of Urban Transport in an Era of Widespread Corruption: the Case of New York Street Railways
Donald Vitaliano ()
Atlantic Economic Journal, 2016, vol. 44, issue 3, 293-302
Abstract Bribery to secure street railway franchises was notorious in the Gilded Age of the late nineteenth century, and New York was the epicenter of this type of fraud. This paper analyzes the cost efficiency of 64 franchises operated in 31 cities across New York state in 1890. The modeling platform is a stochastic frontier estimation of a variable cost function. Contrary to expectations, these private firms are deemed to have minimized costs, and possibly also optimally adjusted their capital stock. Although significant density economies are estimated, no scale or network economies are revealed, which is consistent with the multiplicity of firms operating even in cities of modest size. The efficiency of these firms contrasts sharply with the poor cost efficiency estimated for modern municipal bus operations.
Keywords: Street railways; Cost efficiency; Corruption; Frontier regression; R41; K4; L92; N71 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11293-016-9510-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:atlecj:v:44:y:2016:i:3:d:10.1007_s11293-016-9510-x
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11293/PS2
Access Statistics for this article
Atlantic Economic Journal is currently edited by Kathleen S. Virgo
More articles in Atlantic Economic Journal from Springer, International Atlantic Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().