TOFC/COFC is one of the few rail growth markets, increasing nearly 160% between 1967 and 1987. The goals of the paper are to (1) specify a rail TOFC/COFC demand model and, (2) measure the impact of the 1981 TOFC/COFC regulation exemption on TOFC/COFC rail carloadings. The first goal is achieved by estimation of a macro type, time series regression model in which total U.S. rail TOFC/COFC carloadings are made a function of (a) consumption of durable goods by the adult population, (b) rail prices/motor carrier prices, (c) motor carrier service/rail service, and (d) prime interest rate. The second goal is achieved by adding a dummy variable to the regression model, which measures the impact of TOFC/COFC deregulation during the 1982-1984 period. The empirical results of the model are encouraging. The independent variables have the correct signs and are statistically significant. The model has a good fit. The paper discusses equipment innovations that have increased the demand for TOFC/COFC service. Data documenting the growth of double stack service and some of the reasons for expansion are also included.

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  • Accession Number: 00490029
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Dec 31 1989 12:00AM