Public Enterprise Efficiency: The Case of the New York Canals

Public Enterprise Efficiency: The Case of the New York Canals A random effects stochastic frontier variable cost function is estimated for the Erie Canal and nine interconnected lateral canals in New York, covering the period 1837–1881. Variable costs are 50 % above least cost for the Erie and 42 % above across all the 10 canals. Inefficiency does not vary over time in response to numerous changes in canal administrative structures and personnel or the advent of railroads. The canal system was plagued by documented waste, fraud and mismanagement throughout its history. A privatized, price capped Erie Canal was proposed in 1817, but rejected on political grounds. Review of Industrial Organization Springer Journals

Public Enterprise Efficiency: The Case of the New York Canals

Loading next page...
Springer US
Copyright © 2014 by Springer Science+Business Media New York
Economics / Management Science; Industrial Organization; Microeconomics
Publisher site
See Article on Publisher Site


You’re reading a free preview. Subscribe to read the entire article.

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches


Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.



billed annually
Start Free Trial

14-day Free Trial