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European Integration: Is it on track? A study of railway prices.

Stenbeck, Henning LU and Jacobsson, Erik LU (2021) NEKH02 20202
Department of Economics
Abstract
This thesis aims to investigate if there is a monetary cost associated with interstate travel by rail within the European Union and how this differs from intrastate railway travel in the Union. The paper makes use of two economic theories, Transaction cost theory and Ramsey pricing, to help explain the effect we find. A linear regression is applied to our dataset containing 1050 observations and we find a statistically significant cost attributed to interstate travel by rail within the Union. This implies that there are still barriers present limiting the Unions goal towards a single market and the free movement of goods and people. The effect we find can be explained both by differences in price elasticity of demand between consumers and... (More)
This thesis aims to investigate if there is a monetary cost associated with interstate travel by rail within the European Union and how this differs from intrastate railway travel in the Union. The paper makes use of two economic theories, Transaction cost theory and Ramsey pricing, to help explain the effect we find. A linear regression is applied to our dataset containing 1050 observations and we find a statistically significant cost attributed to interstate travel by rail within the Union. This implies that there are still barriers present limiting the Unions goal towards a single market and the free movement of goods and people. The effect we find can be explained both by differences in price elasticity of demand between consumers and the presence of different transaction costs limiting integration. (Less)
Please use this url to cite or link to this publication:
author
Stenbeck, Henning LU and Jacobsson, Erik LU
supervisor
organization
course
NEKH02 20202
year
type
M2 - Bachelor Degree
subject
keywords
Ramsey pricing, Transaction cost theory, European integration, Interstate travel, Railway prices
language
English
id
9036182
date added to LUP
2021-03-11 11:53:30
date last changed
2021-03-11 11:53:30
@misc{9036182,
  abstract     = {{This thesis aims to investigate if there is a monetary cost associated with interstate travel by rail within the European Union and how this differs from intrastate railway travel in the Union. The paper makes use of two economic theories, Transaction cost theory and Ramsey pricing, to help explain the effect we find. A linear regression is applied to our dataset containing 1050 observations and we find a statistically significant cost attributed to interstate travel by rail within the Union. This implies that there are still barriers present limiting the Unions goal towards a single market and the free movement of goods and people. The effect we find can be explained both by differences in price elasticity of demand between consumers and the presence of different transaction costs limiting integration.}},
  author       = {{Stenbeck, Henning and Jacobsson, Erik}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{European Integration: Is it on track? A study of railway prices.}},
  year         = {{2021}},
}