A Statistical-Engineering Approach to Estimating Railway Cost Functions
Both developing and developed nations share a common problem in the construction and regulation of their transportation sectors. In few nations are transportation companies left free of government control and subject only to the competition of the market place. In order to perform the tasks that governments have assumed, it is essential that they have accurate, detailed estimates of the cost functions of the various transportation modes. These cost functions are used to determine whether society's interests are served by constructing a new mode or expanding existing ones; they are also necessary for determining the proper rate structure in regulated modes.