Railways as patient capital

نویسندگان

چکیده

Abstract Why are railways mostly in the public sector? Interest rates define a time limit for markets. Projects with longer break-evens cannot be funded by business alone. Corporate ‘franchise’ arrangements overcome means of revenue guarantees which transfer risks to government. Innovations originate bottom-up private enterprise. Positive externalities create demand universal provision but scaling up financed commercially. In British railway manias 1830s, 1840s, and 1860s speculative fever overwhelmed prudence. Overinvestment left an excessive infrastructure legacy wiped out windfall profits. other countries required external support. Expanding access gave rise stand-offs investors ended government regulation or takeover. The tramway boom 1870–1914 followed this pattern, initially horse power then electricity. UK privatization 1990s, free market delusion was confounded requirement long-term commitment.

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ژورنال

عنوان ژورنال: Oxford Review of Economic Policy

سال: 2022

ISSN: ['0266-903X', '1460-2121']

DOI: https://doi.org/10.1093/oxrep/grac004