The paper analyses the issue of cost efficiency for eight main European railroads in a sample period of 17 years. Measures of technical and allocative efficiency are obtained from a stochastic cost frontier model, with minimal cost described by a translog cost system. In the model, the cost of allocative inefficiency is estimated simultaneously from the shares' errors, whereas technical inefficiency is modelled by a (half normal) positive departure from the cost frontier. Results show a negligible effect of allocative inefficiency on firms' costs, whereas the cost of technical inefficiency appears to be significant.

VISCONTI PARISIO, L. (1999). A Comparative Analysis of European Railroads Efficiency: a Cost Frontier Approach. APPLIED ECONOMICS, 31(7), 815-823 [10.1080/000368499323788].

A Comparative Analysis of European Railroads Efficiency: a Cost Frontier Approach

VISCONTI PARISIO, LUCIA
1999

Abstract

The paper analyses the issue of cost efficiency for eight main European railroads in a sample period of 17 years. Measures of technical and allocative efficiency are obtained from a stochastic cost frontier model, with minimal cost described by a translog cost system. In the model, the cost of allocative inefficiency is estimated simultaneously from the shares' errors, whereas technical inefficiency is modelled by a (half normal) positive departure from the cost frontier. Results show a negligible effect of allocative inefficiency on firms' costs, whereas the cost of technical inefficiency appears to be significant.
Articolo in rivista - Articolo scientifico
Frontier cost function, efficiency analysis railroads
English
1999
31
7
815
823
none
VISCONTI PARISIO, L. (1999). A Comparative Analysis of European Railroads Efficiency: a Cost Frontier Approach. APPLIED ECONOMICS, 31(7), 815-823 [10.1080/000368499323788].
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/2148
Citazioni
  • Scopus 12
  • ???jsp.display-item.citation.isi??? 10
Social impact