On The Calculation Of Scale Economies From Transport Cost Functions

Sergio R. Jara-Diaz · Cristián E. Cortés

36 citations0/0 files storedJournal of Transport Economics and Policy

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Transport and Economic Policies transportation and logistics systems Merger and Competition Analysis

Abstract

A method is presented to decide how to calculate the degree of scale economies from estimated transport cost functions which include aggregate outputs as arguments. It is shown that the cost elasticity of each of these aggregates should be weighted by a factor that depends crucially on the relation between the aggregate and the output vector.

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References

1982Contestable Markets and the Theory of Industry Structure 1978Hedonic Cost Functions for the Regulated Trucking Industry 1974Railroad Costs, Returns to Scale, and Excess Capacity 2016Conceptual Developments in the Economics of Transportation: An Interpretive Survey 1986Analytical Studies in Transport Economics 1986Network effects and the measurement of returns to scale and density for U.S. railroads 1983Railroads, freight, and public policy 1982The estimation of transport cost functions: a methodological review

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