Cost Function for Urban Rail Transport Systems

This paper formulates short-run operating cost functions for urban rail transport firms and examines the economies of scale and density using data relating to 34 rail systems in cities around the world. It uses the state-of-the-art econometric methods to account for the fact that decisions taken by firms are based on their current level of productivity. Firm output and factor prices are taken to be endogenous. Estimates reveal economies of scale and very strong economies of density in operating costs. These economies of scale emerge due to the presence of cost complementarities between train operation and infrastructure maintenance costs in the urban rail transport industry.

• Supplemental Notes:
  • This paper was sponsored by TRB committee AP010 Standing Committee on Transit Management and Performance.
• Corporate Authors:

  Transportation Research Board

  ,    
• Authors:
  • Anupriya, Anupriya
  • Graham, Daniel J
  • Carbo, Jose M
  • Anderson, Richard
• Conference:
  • Transportation Research Board 98th Annual Meeting
  • Location: Washington DC, United States
  • Date: 2019-1-13 to 2019-1-17
• Date: 2019

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 24p

Subject/Index Terms

• TRT Terms: Costs; Economies of scale; Productivity; Rail transit; Urban areas
• Uncontrolled Terms: Endogeneity
• Subject Areas: Economics; Finance; Railroads;

Filing Info

• Accession Number: 01697720
• Record Type: Publication
• Report/Paper Numbers: 19-04747
• Files: TRIS, TRB, ATRI
• Created Date: Mar 1 2019 3:51PM