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Testing for Economies of Scope in European Railways: An Efficiency Analysis

Christian Growitsch () and Heike Wetzel ()

Journal of Transport Economics and Policy, 2009, vol. 43, issue 1, 1-24

Abstract: In this paper, we conduct a pan-European efficiency analysis to investigate the performance of European railways with a particular focus on economies of vertical integration. We test the hypothesis that integrated railways realise economies of scope and, thus, produce railway services with a higher level of efficiency. To determine whether joint or separate production is more efficient, we apply a data envelopment analysis super-efficiency bootstrapping model which relates the efficiency for integrated production to a reference set consisting of separated firms which use a different production technology. We find that for a majority of European railways, economies of scope exist. © 2009 LSE and the University of Bath

Date: 2009
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Working Paper: Testing for Economies of Scope in European Railways: An Efficiency Analysis (2007) Downloads
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