Do the Usual Results of Railway Returns to Scale and Density Hold in the Case of Heterogeneity in Outputs? A Hedonic Cost Function Approach
Phill Wheat and
Andrew S. J. Smith
Journal of Transport Economics and Policy, 2015, vol. 49, issue 1, 35-57
This paper highlights the importance of modelling the interaction between returns to scale/density and heterogeneity of services when evaluating optimal size and structure of passenger rail operations. We propose and estimate a hedonic cost function which allows us to incorporate measures of train operator heterogeneity, which are central to evaluating the cost effect of merging heterogeneous train operators, and thus informing policy. We illustrate our model via three rail franchise mergers/remappings in Britain, and show that the wrong policy conclusion result could be obtained by only considering the scale and density properties, in isolation from heterogeneity. © 2015 LSE and the University of Bath
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
http://www.catchword.com/cgi-bin/cgi?ini=bc&body=l ... 20150101)49:1L.35;1- (text/html)
Access to full text is restricted to subscribers.
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:tpe:jtecpo:v:49:y:2015:i:1:p:35-57
Access Statistics for this article
Journal of Transport Economics and Policy is currently edited by B T Bayliss, S A Morrison, A Smith and D Graham
More articles in Journal of Transport Economics and Policy from University of Bath
Bibliographic data for series maintained by Christopher F. Baum ().