Changes in Railroad Track Accident Rates.

Railroad track accident rates declined substantially since railroads underwent economic deregulation in 1980. This decline has been attributed to any of several factors including more stringent safety regulation, increased investment in physical plant, improved "safety culture" of firms, and improved technology. This article assesses the significance of these factors in the decline in railroad track accident rates for the period 1983-1994. The analysis applies a production function methodology commonly used to assess the productivity of public and private inputs in producing output. The analysis indicates that federal regulation during the 1983-1994 period, whether measured by defect rates, violation rates, or inspection rates, had a statistically insignificant affect on the rate of track accidents. Railroad track investment had a statistically significant affect on the decline in track accidents during the period. There were no statistically significant differences in the rate of change in track accident rates among firms given the level of other inputs. Lastly, while econometric considerations prevented direct testing for the impact of improved technology on the decline in track accidents, there was not a statistically significant acceleration or deceleration in the rate of technical change over the period. [ABSTRACT FROM AUTHOR]