Samenvatting
This paper reports on results obtained from the estimation of a rail cost function using a pooled time-series, cross-section of major US railroads for the period 1974-86. An analysis is performed of short-run and long-run returns to scale, the extent of capital disequilibrium, and adjustments to capital in the heavily regulated and quasi-regulated environments before and after the passage of the Staggers Act in 1980. In general, it is found that there is considerable overcapitalisation in the rail industry and that this has persisted in spite of the regulatory freedom provided by the Staggers Act. (Author/publisher).