The marginal cost of track reinvestments in the Swedish railway network: Using data to compare methods
Jan-Eric Nilsson and
Additional contact information
Kristofer Odolinski: CTS - Centre for Transport Studies Stockholm (KTH and VTI)
Sherzod Yarmukhamedov: The Swedish National Audit Office
Jan-Eric Nilsson: CTS - Centre for Transport Studies Stockholm (KTH and VTI)
Mattias Haraldsson: CTS - Centre for Transport Studies Stockholm (KTH and VTI)
No 2018:20, Working papers in Transport Economics from CTS - Centre for Transport Studies Stockholm (KTH and VTI)
In this study, we analyze the difference between survival and corner solution models in estimating the marginal cost of reinvestments. Both approaches describe the reinvestment process in rather intuitively similar ways but have several methodological distinctions. We use Swedish railway data on track segment and section levels over the period 1999-2016 and focus on reinvestments in track superstructure. Results suggest the marginal costs from survival and corner solution models are SEK 0.0041 and SEK 0.0103, respectively. The conclusion is that the corner solution model is more appropriate, as this method consider the impact traffic has on the risk of reinvestment as well as on the size of the reinvestment cost. The survival approach does not consider the latter, which is problematic when we have systematic variations in costs due to traffic and infrastructure characteristics.
Keywords: railways; reinvestment; renewal; survival model; corner solution model; two-part model; marginal cost (search for similar items in EconPapers)
JEL-codes: C41 H54 L92 R48 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-reg, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.cts.kth.se/polopoly_fs/1.850966!/CTS2018-20.pdf Full text (application/pdf)
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:hhs:ctswps:2018_020
Access Statistics for this paper
More papers in Working papers in Transport Economics from CTS - Centre for Transport Studies Stockholm (KTH and VTI) Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden.
Bibliographic data for series maintained by CTS ().