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The “Standby” Concept on Railways

The “Standby” Concept on Railways

The Author analyses the reasons why the railways have more capacity than they can profitably use. Should this surplus capacity be reduced or should the State subsidise its continuance? He concludes that "it is standby capacity which need not exist for commercial or operating reasons and which the community has shown no pressing desire to retain".

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Eliminating Railway Deficits. The Effects for Australia

Problems associated with subsidising Australian non-urban rail services are revisited by evaluating the macro-economic impacts of a policy that would eliminate railway deficits. The model used demonstrates how several policy scenarios for the abolition of railway subsidies can be explored by simulating shocks to the economy. The results illustrate the range of economic benefits that could accrue from the abolition of subsidies and identifies interests most likely to benefit or lose from such a policy.

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