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The book is dedicated to the analysis of railway reforms in the countries of the former USSR and, to a certain extent, those of Eastern Europe. It encompasses three chapters united by the same subject but different in methodology: an extended introduction to the reform agenda in the countries of the former USSR and a broad review of literature on railway reforms, estimation of railways efficiency using stochastic frontier approach, and an empirical evaluation of governance choice in railways from the perspective of transaction costs economics. The rough conclusion which could be made is that vertical separation doesn t necessary lead to an increase in railways performance.