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Railway (De)Regulation: A European Efficiency Comparison
Author(s) -
FRIEBEL GUIDO,
IVALDI MARC,
VIBES CATHERINE
Publication year - 2010
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/j.1468-0335.2008.00739.x
Subject(s) - endogeneity , panel data , frontier , economics , efficient frontier , production–possibility frontier , production (economics) , econometrics , macroeconomics , political science , finance , portfolio , law
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.