THE DIFFERENTIAL EFFECTS OF RAIL RATE DEREGULATION - U.S. CORN, WHEAT AND SOYBEAN MARKETS

It is important to understand the distribution and incidence of influences associated with deregulation of rail rates. The objective of this research was to provide insight into inter- and intra-commodity rail rate differentials observed since rates were deregulated in 1981. A cross-sectional/time-series analysis of U.S. corn, wheat, and soybean shipments was considered in the assessment of rail grain rate differentials. County level rail shipment characteristics for two decades were considered in the analysis. The time period selected, 1981 through 2000, covers two decades of pricing by railroads in the deregulated environment. As expected, results suggest that market-based pricing in recent years implies that rail demand elasticity is becoming an increasingly important factor in the relative competitiveness of U.S. grain producers. The overall benefit of rail deregulation, measure in terms of rail productivity and decreasing in rail rates for shippers, is well established in previous research and consistent with the findings in this research.

• Record URL:
  https://www.ugpti.org/resources/reports/details.php?id=467
• 
• Record URL:
  https://rosap.ntl.bts.gov/view/dot/15937
• Corporate Authors:

  Upper Great Plains Transportation Institute

  North Dakota State University
  1320 Albrecht Boulevard
  Fargo, ND  United States  581052
• Authors:
  • Bitzan, John
  • Vachal, K
  • VanWechel, T
  • Vinje, D
• Publication Date: 2003-6

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 58 p.

Subject/Index Terms

• TRT Terms: Benefits; Commodities; Competition; Corn; Cross sections; Demand; Deregulation; Elasticity (Economics); Markets; Pricing; Productivity; Railroads; Rates; Soybeans; Time series analysis; Wheat
• Geographic Terms: United States
• Subject Areas: Economics; Railroads;

Filing Info

• Accession Number: 00960461
• Record Type: Publication
• Report/Paper Numbers: MPC Report No. 03-144
• Files: NTL, TRIS
• Created Date: Jul 18 2003 12:00AM