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    Railroad (De)Regulation – A European Efficiency Comparison

    We estimate the effects of reforms on railroad efficiency in Europe by using a new panel data covers most EU countries over a period of more than 20 years. A production frontier model finds efficiency increases when reforms such as third-party network access, introduction of an independent regulator, and vertical separation are implemented. However, the reform effects depend on sequencing: introduction of multiple reforms in a package has negative effects, while sequential reforms improve efficiency. We also show that our results are robust against potential problems of endogeneity.


    Friebel, G., Ivaldi, M., & Vibes, C. (2010). Railroad (De)Regulation - A European Efficiency Comparison, Economica, 77, 77-91.

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