Smith, ASJ (2012) The application of stochastic frontier panel models in economic regulation: experience from the European rail sector. Transportation Research Part E: Logistics and Transportation Review, 48 (2). 503 - 515. ISSN 1366-5545
Abstract
This paper shows how stochastic frontier panel techniques can be used by economic regulators to benchmark regulated firms against international best practice. We utilise a unique, panel dataset of European rail infrastructure managers (1996–2006). A time-varying inefficiency model, with firm-specific time paths for inefficiency, is adopted. The results were used in the 2008 regulatory review of the British infrastructure manager, Network Rail, and showed that the company faced an efficiency gap of around 40% against European best practice – in line with engineering-based evidence. More widely, the paper highlights the advantages of the inefficiency specification adopted for use in economic regulation.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2012. Elsevier. Uploaded in accordance with the publisher's self-archiving policy. NOTICE: this is the author’s version of a work that was accepted for publication in Transportation Research Part E. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Transportation Research Part E, 48(2),(2012) DOI:10.1016/j.tre.2011.10.003 |
Keywords: | Stochastic frontier model; Efficiency; Panel data; International benchmarking; Economic regulation |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > Institute for Transport Studies (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 16 Feb 2015 13:22 |
Last Modified: | 21 Apr 2015 20:19 |
Published Version: | http://dx.doi.org/doi:10.1016/j.tre.2011.10.003 |
Status: | Published |
Publisher: | Elsevier |
Refereed: | Yes |
Identification Number: | 10.1016/j.tre.2011.10.003 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:82982 |