On Wed, 31 Jan 2001, [iso-8859-1] markjohn� wrote: > i would like to ask to all the economists out there if the railroad system > of the country really matters in its development, even with the other good > transport facilities like better paved roads and freight. Yes, the railroad system does matter, because much of goods is transported via rail, and assuming that interventions have not skewed the market significantly towards railroads, the fact that much is transported thereby demonstrates in fact that railroads matter. It is more productive to have one engine pulling many cars than to have many separate engines if the cars are all going to the same place at the same time, and the steel rails and wheels provide less friction and more efficient transit than rubber and road. Fred Foldvary
