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

Christian Growitsch () and Heike Wetzel ()

No 72, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: In this paper, we conduct a pan-European effciency analysis to investigate the performance of European railways with a particular focus on economies of vertical integration. We test the hypothesis that integrated railways realize economies of scope and, thus, produce railway services with a higher level of effciency. To determine whether joint or separate production is more effcient, we apply a Data Envelopment Analysis super-effciency bootstrapping model which relates the ef- ficiency for integrated production to a reference set consisting of separated firms which use a di erent production technology. We find that for a majority of European railways economies of scope exist.

Keywords: Efficiency; Vertical Integraton; Railway Industry (search for similar items in EconPapers)
JEL-codes: L22 L43 L92 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec and nep-eff
Date: 2007-12
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Journal Article: Testing for Economies of Scope in European Railways: An Efficiency Analysis (2009) Downloads
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