CAPITAL STOCK AND INVESTMENT IN THE TRANSPORT SERVICES INDUSTRY. RAIL TRANSPORT

This report presents an analysis of investment and capital stock in rail transport. The evolution and structure of physical capital, its determining factors, and the forecasts for the 1980s are examined. Since World War II, production of Canadian rail services has risen nearly 4 percent per year. Surplus capacity of the rail plant was progressively absorbed by the increased demand for rail services; increasing utilization of capital may account for stabilization in investment spending since 1970. Analysis or forecast of investment in the rail sector is difficult because certain economic theories such as perfect competition, maximization of corporate profits and constant rate of capital stock utilization are affected by political and social considerations. Chapter 1 presents an historical analysis of the behavior of major variables in rail sector investments since World War II. Chapter 2 deals with technological progress and capital development while Chapter 3 covers some leading indicators of investment such as obsolescence. Chapter 4 deals with subsidies, the government instrumental variables. Investment prospects are the topic of Chapter 5.

• Corporate Authors:

  Transport Canada Research and Development Centre

  Tower C, Place de Ville
  Ottawa, ONo K1A 0N5,   Canada 
• Publication Date: 1980

Media Info

• Features: Appendices; Figures; Tables;
• Pagination: 60 p.

Subject/Index Terms

• TRT Terms: Depreciation; Econometric models; Finance; Financial capital; Productivity; Railroad facility operations; Service life; Subsidies; Transportation policy
• Uncontrolled Terms: Financial management; Line capacity; Obsolescence
• Geographic Terms: Canada; United States
• Old TRIS Terms: National transportation policies
• Subject Areas: Design; Economics; Finance; Policy; Railroads;

Filing Info

• Accession Number: 00341712
• Record Type: Publication
• Report/Paper Numbers: TP 3087
• Files: TRIS
• Created Date: Oct 28 1981 12:00AM