ICC BEHAVIOR ON RAIL ABANDONMENTS

Rail management is not free to determine whether it can cease operations over certain parts of its plant. Rather such management decisions are subject to the approval of a Federal regulatory agency, The Interstate Commerce Commission (ICC). The ICC, in turn, trades off the carrier's desires with those of the public who may be adversely affected by the proposed abandonment of service. The nature of the trade off made by the ICC is explored through a theoretical model of the Commission's behavior. This behavioral theory gives an a priori construct from which empirical tests of actual Commission abandonment decisions are conducted. A (0,1) grant-deny decision model is postulated and estimated as a linear probability model, as a discriminant model, and as a probit model. All independent variables have the correct signs. In addition, the models classify existing cases properly at the 95 percent level. The empirical model suggests that Commission decisions are ordered and follow a well defined pattern.

  • Corporate Authors:

    Association of Interstate Commerce Com Practitners

    1112 ICC Building, 12th Street & Constitution Avenue, NW
    Washington, DC  United States  20423
  • Authors:
    • Allen, W B
  • Publication Date: 1974-5

Media Info

  • Features: Figures; References; Tables;
  • Pagination: p. 553-571
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00084742
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 2 1975 12:00AM