Journal article

Efficiency measurement in network industries : application to the Swiss railway companies

  • Farsi, Mehdi Istituto microeconomia e economia pubblica (MecoP), Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera
  • Filippini, Massimo Istituto microeconomia e economia pubblica (MecoP), Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera
  • Greene, William Department of Economics, Stern School of Business, New York University, USA
    2005
Published in:
  • Journal of Regulatory Economics. - Springer Netherlands. - 2005, vol. 28, no. 1, p. 69-90
English The persistence of increasingly high government subsidies in Switzerland’s railroads has led the federal and cantonal authorities to discussing the possibility of high-powered incentive contracts such as those based on cost efficiency benchmarking. Railways are however, characterized by a high degree of unobserved heterogeneity that could bias the efficiency estimates. This paper examines the performance of several panel data models to measure cost efficiency in network industries. The unobserved firm-specific effects and the resulting biases are studied through a comparative study of several stochastic frontier models, applied to a panel of 50 railway companies operating over a 13-year period.
Language
  • English
Classification
Economics
License
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https://susi.usi.ch/usi/documents/318018
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