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Scale Economies, Elasticities of Substitution and Behaviour of the Railway Transport Costs in Spain

  • Pablo Coto-Millán
  • Gema Carrera-Gómez
  • Vicente Inglada
  • Ramón Núñez-Sánchez
  • Juan Castanedo
  • Miguel A. Pesquera
  • Rubén Sainz
Part of the Contributions to Economics book series (CE)

7.5 Summary and Conclusions

In this paper, we have studied the behaviour of state company RENFE costs from 1964 to 1992. Translog function with the restriction of grade-one homogeneity in the factor prices, has been analized and acceptable results have been obtained for the vehicles-km output. The cost function estimated has an good behaviour since it meets the conditions of monotonicity, quasi concavity and grade-one homogeneity in the factor prices.

The comparison between elasticities support the results in previous research since it can be observed that the Allen elasticities of substitution with respect to the Morishima elasticities, overestimate both the substituibility and complementariety relationships.

The estimations basically find that the industry is characterized by constant returns to scale.

Keywords

Scale Economy Input Price Factor Price Translog Cost Function Translog Function 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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Copyright information

© Physica-Verlag Heidelberg 2007

Authors and Affiliations

  • Pablo Coto-Millán
    • 1
  • Gema Carrera-Gómez
    • 1
  • Vicente Inglada
    • 2
  • Ramón Núñez-Sánchez
    • 1
  • Juan Castanedo
    • 3
  • Miguel A. Pesquera
    • 3
  • Rubén Sainz
    • 1
  1. 1.Department of EconomicsUniversity of CantabriaSpain
  2. 2.Department of EconomicsUniversity Carlos III of MadridSpain
  3. 3.Department of TransportsUniversity of CantabriaSpain

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