Yardstick Regulation in Japan’s Railway Industry

Abstract

Yardstick regulation with multiple regression analysis was implemented in Japan’s railway industry in 1997. We tested statistical reliability of the regression models. We can say that some parameters have problems in significance and signs now because fifteen years have passed after the implementation of the regression models. We could not find a significant difference in the regression analysis between the railways in Tokyo metropolitan area (Kanto area) and Osaka metropolitan area (Kansai area).