Economies of scale and density in urban rail transport: effects on productivity

• Type: Chapter or Part of a Book
• Date: 2012

Authors

Daniel Graham (Author) Other; António Fidalgo Couto (Author) FEUP; William Adeney (Author) Other; Stephen Glaister (Author) Other

Book

Title: Recent Developments in the Economics of Transport

Pages: 206-221

ISBN: 978 1 78100 649 8

Scientific classification

FOS: Social sciences > Economics and Business

CORDIS: Social sciences > Economics > Transport economics

Other information

Abstract (EN): This study seeks to quantify the magnitude of returns to scale and returns to traffic density for urban rail operations, and to identify factors that give rise to productivity change in urban rail transportation. Urban rail systems include subways, light railways and suburban rail systems serving cities. Using data relating to 17 rail systems in cities around the world, the effects of constant and non-constant returns on output and productivity growth are isolated. Estimates reveal constant returns to scale but increasing returns to density. The productivity model shows that total factor productivity growth is created by both non-constant returns and technology effects, and is very important in differentiating the output performance of urban rail systems. Factor substitution and technology are both evident in explaining the variation between firms in rates of labor productivity growth. The methodology developed in this paper can make inter-firm comparison on a more even basis by isolating the sources that give rise to variation in productivity.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 15