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Economies of Traffic Density in the Rail Freight Industry

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  • Robert G. Harris

Abstract

The extent of economies of traffic density in the rail freight industry is a matter of critical importance with respect to public investment in and the financial viability of the United States rail system. Certain inadequacies of previous studies of rail costs are reviewed and methodological modifications proposed. The results of an econometric analysis which incorporates these revisions are presented. The evidence strongly supports the hypothesis that significant economies of density exist, and that many of the light-density lines which comprise 40 percent of the rail system should be eliminated.

Suggested Citation

  • Robert G. Harris, 1977. "Economies of Traffic Density in the Rail Freight Industry," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 556-564, Autumn.
    • Handle: RePEc:rje:bellje:v:8:y:1977:i:autumn:p:556-564
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    Citations

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    Cited by:

    1. Müller, Gernot, 2006. "Zur Ökonomie von Trassenpreissystemen," WIK Discussion Papers 279, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    2. William Dougan, 1984. "Railway abandonments, cross-subsidies, and the theory of regulation," Public Choice, Springer, vol. 44(2), pages 297-305, January.
    3. Bitzan, John D & Keeler, Theodore E, 2007. "Economies of Density and Regulatory Change in the U.S. Railroad Freight Industry," Journal of Law and Economics, University of Chicago Press, vol. 50(1), pages 157-179, February.
    4. repec:ebl:ecbull:v:18:y:2006:i:5:p:1-7 is not listed on IDEAS
    5. Xia, Wenyi & Zhang, Anming, 2016. "High-speed rail and air transport competition and cooperation: A vertical differentiation approach," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 456-481.
    6. Lee, Tenpao & Baumel, C. Phillip, 1987. "The Cost Structure of the U.S. Railroad Industry Under Deregulation," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 28(1).
    7. Waters II, William G., 2007. "Evolution of Railroad Economics," Research in Transportation Economics, Elsevier, vol. 20(1), pages 11-67, January.
    8. Siew Hoon Lim & C.A. Knox Lovell, 2009. "Profit and productivity of US Class I railroads," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(7), pages 423-442.
    9. Brennan, Donna C., 1995. "Economic Issues in Farm-to-Port Grain Storage, Handling and Transport," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(01), pages 1-11, April.
    10. Vellturo, Christopher Allen., 1992. "Deregulation, mergers, and cost savings in Class I U.S. railroads, 1974-1986," Working papers 3415-92., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    11. Richard C. Levin, 1981. "Regulation, Barriers to Exit, and the Investment Behavior of Railroads," NBER Chapters, in: Studies in Public Regulation, pages 181-230, National Bureau of Economic Research, Inc.
    12. Johnson, Marc A., 1981. "Impacts On Agriculture Of Deregulating The Transportation System," 1981 Annual Meeting, July 26-29, Clemson, South Carolina 279412, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. John D. Bitzan & Theodore E. Keeler, 2003. "Productivity Growth and Some of Its Determinants in the Deregulated U.S. Railroad Industry," Southern Economic Journal, John Wiley & Sons, vol. 70(2), pages 232-253, October.
    14. Brennan, Donna C., 1995. "Deregulation And Efficiency In Grain Transport," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(2), pages 1-13, August.
    15. Zakharenko, Roman & Luttmann, Alexander, 2023. "Downsizing the jet: A forecast of economic effects of increased automation in aviation," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 25-47.

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