Slacks determinants in Brazilian railways: a distance friction minimization approach with fixed factors

Peter Wanke and Barros

Applied Economics, 2015, vol. 47, issue 47, 5103-5120

Abstract: This study investigates the drivers for output-increasing/input-saving potentials in the Brazilian railway industry, which has undergone significant transformations since its privatization in the mid-1990s. The main research objective is to determine whether or not different types of cargoes and geographic regions serviced present a significant impact on railway slacks by applying a distance friction minimization (DFM) approach with fixed factors. Based on a balanced panel model, secondary data from the period 2004 to 2012 were collected and analysed. Results support anecdotal evidence regarding a heterogeneous impact of types of cargo and geographic location on input-reducing and output-increasing potentials, besides network length and average speed. Policy implications for railway authorities are also addressed by focusing on the specifics of each railway operator.

Date: 2015
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Citations: View citations in EconPapers (5)

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DOI: 10.1080/00036846.2015.1042145

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