Faculty of Economics and Business Administration Publications Database

Railroad (De)Regulation - A European Efficiency Comparison

Ivaldi, Marc
Vibes, Catherine
Volume: 77
Number: 305
Pages: 77 - 91
Month: January
ISSN-Print: 0013-0427
Link External Source: Online Version
Year: 2010
Keywords: Transportation; Economic conditions; Deregulation; Railroads; Sustainable development
Abstract: We estimate the effects of reforms on railroad efficiency in Europe by using a new panel data set that covers most EU countries over a period of more than 20 years. A production frontier model finds that efficiency increases when reforms such as third-party network access, introduction of an independent regulator, and vertical separation are implemented. However, the reform effects depend on sequencing: introduction of multiple reforms in a package has negative effects, while sequential reforms improve efficiency. We also show that our results are robust against potential problems of endogeneity.