We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
THE ESTIMATION OF A HYBRID COST FUNCTION FOR A RAILROAD FIRM.
- Authors
Braeutigam, Ronald R.; Daughety, Andrew F.; Turnquist, Mark A.
- Abstract
In this article authors present an estimation model for a flexible form short-run cost function for a single railroad firm. The time series data has been used and engineering information about technology has been incorporated to improve model specification. According to authors the inclusion of this information constitutes a hybrid approach, since specific technological relationships are used to improve their specification of the flexible form cost function. They characterize output not only by the volume of freight hauled, but also by a measure of the quality of service provided, the average speed of a shipment through the system. The estimated cost function is tested by authors, to confirm whether the addition of the information obtained from the engineering process functions has significantly improved the model. In this analysis authors adopt the view that the railroad operates as a common carrier, required to provide service to any shipper requesting service at the tariff in force.
- Subjects
RAILROADS; TRANSACTION costs; COST estimates; ECONOMICS; INDUSTRIAL costs; ECONOMETRIC models; ESTIMATION theory; TIME series analysis; TECHNOLOGY
- Publication
Review of Economics & Statistics, 1982, Vol 64, Issue 3, p394
- ISSN
0034-6535
- Publication type
Article
- DOI
10.2307/1925937