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Profit and productivity of US Class I railroads

✍ Scribed by Siew Hoon Lim; C.A. Knox Lovell


Publisher
John Wiley and Sons
Year
2009
Tongue
English
Weight
339 KB
Volume
30
Category
Article
ISSN
0143-6570

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✦ Synopsis


Abstract

This paper examines how productivity changes and price changes have contributed to short‐run profit change in the railroad industry. Using an unbalanced panel of US Class I railroads for the period 1996–2003, a short‐run profit change decomposition model is used to attribute intertemporal profit change to its causal factors. We find that productivity improvements and an increased scale of production contributed to increases in profit, and that variation in operating efficiency had a mixed impact on profit. We also find that relative changes in rail rates and variable input prices exerted downward pressure on profit. Copyright © 2009 John Wiley & Sons, Ltd.


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