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Title:Testing for economies of scope in European railways: an effciency analysis PDF Logo
Authors:Growitsch, Christian
Wetzel, Heike
Issue Date:2007
Series/Report no.:University of Lüneburg Working paper series in economics 72
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 realize 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.
JEL:L22
L43
L92
Document Type:Working Paper
Appears in Collections:Working Paper Series in Economics, Leuphana Universität Lüneburg

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