ANALYSIS OF PRICES AND COSTS IN TRUCKING INDUSTRY
The scope of the study includes the entire motor freight transportation and warehousing industry and covers the years 1961 to mid-1978. A major finding of the study is that trend rates of change of ton-miles and revenue per ton-mile, used to measure output and price movements respectively, are probably biased by about 1.5 percentage points per year in opposite directions. Both the workers and owners of firms in the industry as a whole experienced income growth which exceeded that in the aggregate economy. Some inferences about recent price developments were drawn from the behavior of average hourly earnings and the index of prices of materials and services purchased by the trucking industry from other industries constructed especially for the study. These data suggest that trucking costs probably rose at an annual rate of 7.6 percent from 1975 to 1978. The final objective of the study was to assess the impact on the overall U.S. inflation rate of future price and wage increases in the trucking industry. For this purpose, a unique, three-hundred equation quarterly model of the U.S. economy was used. Multipliers calculated from this model suggest that a 7 percent wage increase in the industry fully passed through into the trucking prices adds 0.3 percent to the GNP deflator in four quarters, and 0.5 percent in eight quarters.
Popkins (Joel) and CompnayWashington, DC United States
Department of LaborAssistant Secretary for Policy, Evaluation and Research
Washington, DC United States 20213
- Popkin, J
- Publication Date: 1978-11
- Pagination: 65 p.
- TRT Terms: Alternatives analysis; Analysis; Costs; Demand; Economic analysis; Economic forecasting; Economic models; Freight transportation; Highway transportation; Income; Inflation; Labor market; Prices; Regression analysis; Salaries; Supply; Trend (Statistics); Wages; Warehousing
- Uncontrolled Terms: Cost analysis
- Old TRIS Terms: Cargo transportation; Deflation economics; Supply economics
- Subject Areas: Data and Information Technology; Economics; Finance; Freight Transportation; Highways; Society;
- Accession Number: 00198069
- Record Type: Publication
- Source Agency: National Technical Information Service
- Report/Paper Numbers: ASPER/PUR-78/377/A Final Rpt.
- Contract Numbers: DL-B-9-M-8-3778
- Files: TRIS
- Created Date: Sep 15 1979 12:00AM