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Applications of Production Theory in Transportation

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Handbook of Production Economics

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Abstract

In this chapter, the experience of production and cost analysis in transportation is reviewed. The key production and cost analysis needs of the sector can be identified providing strategic operational insight, establishing evidence as to which market and regulatory structures yield best outcomes and providing the evidence base for regulatory scrutiny either through yardstick competition or more formal price cap regulation. The upshot of this is that transportation has provided the motivation and illustration for many innovations within production, cost, and efficiency methods, and this chapter brings to life the issues and solutions found in the sector.

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Notes

  1. 1.

    As of 2021, Road; previously the Office of Rail Regulation and prior to that the Office of the Rail Regulator.

  2. 2.

    For notational convenience and consistency with other equations which do not distinguish between the network size variable and other outputs, the network size variable is treated as the mth output and so only the first m-1 output elasticities are used in the RtD equation (which excludes this output).

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Authors and Affiliations

  1. Institute for Transport Studies, University of Leeds, Leeds, UK

    Phill Wheat & Kristofer Odolinski

  2. Institute for Transport Studies, University of Leeds, Leeds, UK, VTI, Stockholm, Sweden

    Kristofer Odolinski

  3. Institute for Transport Studies and Leeds University Business School, University of Leeds, Leeds, UK

    Andrew Smith

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  1. Phill Wheat
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  2. Kristofer Odolinski
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  3. Andrew Smith
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Correspondence to Phill Wheat .

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Editors and Affiliations

  1. Department of Economics, University of Connecticut, Storrs, CT, USA

    Subhash C. Ray

  2. Department of Agricultural and Resource Economics, University of Maryland, College Park, MD, USA

    Robert G. Chambers

  3. Department of Economics, Binghamton University, Binghamton, NY, USA

    Subal C. Kumbhakar

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Wheat, P., Odolinski, K., Smith, A. (2022). Applications of Production Theory in Transportation. In: Ray, S.C., Chambers, R.G., Kumbhakar, S.C. (eds) Handbook of Production Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-3455-8_39

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