Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

CHAPTER II
REVIEW OF RESEARCH IN COST AND PRODUCTION OF TRANSPORTATION:
INLAND WATERWAY AND RAIL
Introduction
There exist a number of studies dealing in part or in whole with
cost or production relations for rail and inland water transportation
modes. In general, the goals of these studies are similar to the
goals of any industry cost or production analysis: examination of
extent of returns to scale in order to gain insight into the observed
or potential size distribution of firms in the industry; evaluation of
efficiency of firms in terms of how well they approximate minimum cost,
given factor prices; and, with detailed enough production relations,
examination of factor productivities, substitution possibilities, ex-
pansion paths, etc. In considering transportation industries, however,
additional considerations emerge. For example, transportation regula-
tory agencies need cost information for their decision-making processes.
Also, decisions regarding public investment in waterways improvements
or construction require estimation of benefits to the public. These
benefit estimates are quite closely connected with the expected cost
saving due to the proposed investment and its effect on competing
modes.
Approaches toward achieving these goals differ in part because
goals have differed: one wishing to answer the question whether
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