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A Further Analysis of Provincial Trucking Regulation

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  • John Palmer

Abstract

Forcing what is essentially a hyperbolic relationship into a linear regression model can create a "hyperbolic bag." This bag takes on importance if it is systematically related to other variables in the regression model. For the case at hand, it appeared that using a linear model might overstate the effects of regulation on trucking rates because the provinces which regulate rates have either relatively short or relatively long average distances, while those which do not regulate rates have intermediate distances falling at the bottom of such a bag. The regression model was respecified to correct for this problem, and while the respecification appears unimportant, other questions are raised.

Suggested Citation

  • John Palmer, 1973. "A Further Analysis of Provincial Trucking Regulation," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 655-664, Autumn.
    • Handle: RePEc:rje:bellje:v:4:y:1973:i:autumn:p:655-664
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    Cited by:

    1. Michel Boucher, 1986. "L'inspiration americaine de la dereglementation en transport routier. (With English summary.)," Canadian Public Policy, University of Toronto Press, vol. 12(1), pages 189-201, March.

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