By B Starr McMullen
A number of of the papers during this quantity are all in favour of assessing either the timing and the affects of deregulation and regulatory reform within the US transportation zone. of accelerating curiosity is the significance of productiveness development and the position performed by way of new applied sciences in a extra aggressive marketplace surroundings. 4 of the papers during this quantity deal at once with those concerns within the context of motor companies and railroads, sectors which were working less than considerably diminished regulatory constraints for the earlier 20 years within the US. even though the monetary people railroads has greater given that 1980, there's nonetheless a few predicament relating to their future viability as deepest firms. hence, one of many papers considers the possibility of extra rate reductions in railroad expenses via transcontinental mergers, a arguable factor a result of small variety of railroads that stay within the undefined.
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Additional info for Transportation After Deregulation (Research in Transportation Economics)
Example text
1986). Measuring the Multilateral Allocation of Rents: Wyoming Low Sulfur Coal. Rand Journal of Economics, 17, 416–430. Babcock, M. W. (1981). Potential Impact of Rail Deregulation in the Kansas Wheat Market. Journal of Economics, 7, 93–98. Babcock, M. W. (1984). Efficiency and Adjustment: The Impact of Railroad Deregulation. C. Babcock, M. , Sorenson, L. , Chow, M. , & Klindworth, K. A. (1985). Impact of the Staggers Rail Act on Agriculture: A Kansas Case Study. Proceedings of the Transportation Research Forum, 26, 364–372.
The source of the technological bias, if exists, is captured by the the parameter estimates of the third order terms, Tij, Tim, Tjn, Tiy, Tjy and Tyy. The assumption of cost minimization implies that the ith input’s cost share can be obtained by Shephard’s lemma: Si = Ѩ ln C/Ѩ ln Pi = i + iy ln y + ͚m im ln Pm + ͚j ij ln aj + Ti T + Tiy T ln y + ͚j Tij T ln aj + ͚m Tim T ln Pm + Di D + i (3) In order for the cost function to be well-behaved, the restrictions of homogeneity of degree one in input prices, unity of sum of cost shares, and symmetry are imposed in the cost function and the cost-share equations.
Here it is important to distinguish between the truckload (TL) and the less-than-truckload (LTL) sectors of the industry. Economists who promoted deregulation presumed that the entire motor carrier industry had relatively 27 28 1 2 3 4 5 6 7 8 9 1011 11 12 13 14 15 16 17 18 19 2011 21 22 23 24 25 26 27 28 29 3011 31 32 33 34 35 36 37 38 39 40 LAWRENCE WONG insignificant barriers to entry, utilized relatively low technology in terms of equipment and labor skills, and possessed no economies of scale.
