Testing for Economies of Scope in European Railways: an effciency analysis

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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.
Original languageEnglish
Place of PublicationLüneburg
PublisherUniversität Lüneburg
Number of pages25
Publication statusPublished - 2008

    Research areas

  • Economics - efficiency, vertical integration, railway industry

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  1. Martin Harbusch

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