The proposed restructuring of the northeastern railroads, with the possibility of abandonment of substantial mileage of lines and proposals for abandonments in Iowa and elsewhere, warrants attention to the relevant factors that should determine policy with regard to abandonment. This article presents the various elements that enter into abandonment decisions by individual railroads, and the additional elements, largely reflecting externalities, that should influence decisions about abandonment by the national government and the communities served. Various alternatives to abandonment, including transfer to local shipper-owned firms and to local governments, which allow internalization of some of the benefits external to the present companies are reviewed, as well as subsidy policy.

  • Corporate Authors:

    Bureau of Economic and Business Research

    408 David Kinley Hall
    Urbana, IL  United States  61801
  • Authors:
    • Due, J F
    • Sidhu, N D
  • Publication Date: 1974

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00083050
  • Record Type: Publication
  • Source Agency: Quarterly Review of Economics and Business
  • Files: TRIS
  • Created Date: Apr 8 1975 12:00AM