FREIGHT TRANSPORT REGULATION

While this work was completed in advance of actual deregulation of the railroad and trucking industries, the authors evaluate the consequences of such a step by means of a general equilibrium model which quantifies the efficiency and distributional effects of such a step. New econometric and analytical tools are used in the general equilibrium analysis with explicit attention to tradeoffs between efficiency and distributive aspects of deregulation policies and the relationship between freight rates and regional incomes. The analysis recognizes interdependence among various railroad and trucking modes. By differentiating between short-run and long-run equilibrium, it takes into account changes in railroad infra-structure, balancing the huge costs of line maintenance against the savings of abandoning light-density routes. The book also tests a number of general hypotheses about the structure of cost and demand in the transport industries. It was found that public interest would be served by deregulation, particularly in less-than-truckload trucking of general commodities, allocating resources effectively and equitably and causing few disruptions of existing equilibrium. Although a movement toward competitive equilibrium in rail and truckload markets would generate aggregate efficiency and distributive benefits considerably in excess of costs, it was found likely that considerable income transfer would result from such changes. Although written from the viewpoint of the economist, transport and policy analysts also will find valuable information in this volume.

  • Corporate Authors:

    Massachusetts Institute of Technology Press

    55 Haywood Street
    Cambridge, MA  USA  02142-1493
  • Authors:
    • Friedlaender, A F
    • SPADY, R H
  • Publication Date: 1980

Media Info

  • Features: Appendices; Figures; References; Tables;
  • Pagination: 366 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00330163
  • Record Type: Publication
  • Contract Numbers: DOT-OS-50239, DOT-TSC-1599
  • Files: TRIS
  • Created Date: Apr 15 1981 12:00AM