Abstract
In this paper, a pan-European efficiency analysis is conducted to investigate the performance of European railways with a particular focus on economies of vertical integration. We test the hypothesis that integrated railways realise economies of scope and, thus, produce railway services with a higher level of efficiency. To determine whether joint or separate production is more efficient, we apply a data envelopment analysis super-efficiency bootstrapping model which relates the efficiency for integrated production to a reference set consisting of separated firms which use a differentproduction technology. We find that for a majority of European railways, economies of scope exist. (Author/publisher).