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The Inefficiency of Regulating a Competitive Industry: Productivity Gains in Trucking Following Reform

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  • Ying, John S

Abstract

This study confirms the higher productivity levels predicted by advocates of regulatory reform in trucking and shows that these gains have been substantial. Cost simulations suggest that, following a year of higher expenditures, efforts to remain competitive have yielded considerable cost savings that increase over time, from 1 percent in 1981 to 23 percent in 1984. The indirect effects of reform through the independent variables initially decrease costs, but later lead to higher costs. The cumulative effect has been a less than 1 percent increase in costs in 1980, becoming by 1984, a significant 16 percent productivity gain. Copyright 1990 by MIT Press.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 72 (1990)
Issue (Month): 2 (May)
Pages: 191-201

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Handle: RePEc:tpr:restat:v:72:y:1990:i:2:p:191-201

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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Cited by:
  1. Lewis, Justin, 2013. "Veiled Waters: Examining the Jones Act's Consumer Welfare Effect," MPRA Paper 51469, University Library of Munich, Germany.
  2. Carl Gaigne & Kristian Behrens, 2006. "Density (dis)economies in transportation: revisiting the core-periphery model," Economics Bulletin, AccessEcon, vol. 18(5), pages 1-7.
  3. Robert Gagné & Georges Dionne, 1996. "Progrès technique et croissance de la productivité : estimations sur un panel incomplet de firmes ayant des qualités de production différentes," Économie et Prévision, Programme National Persée, vol. 126(5), pages 63-76.
  4. McCarthy, Patrick S, 1995. "The 1982 Surface Transportation Assistance Act (STAA): Implications of relaxed truck weight and size limits for highway safety," Transport Policy, Elsevier, vol. 2(2), pages 107-117, April.
  5. Behrens, Kristian & Gaigne, Carl & Ottaviano, Gianmarco I.P. & Thisse, Jacques-Francois, 2006. "How density economies in international transportation link the internal geography of trading partners," Journal of Urban Economics, Elsevier, vol. 60(2), pages 248-263, September.
  6. Behrens, Kristian & Gaigné, Carl & Thisse, Jacques-François, 2007. "Is the Regulation of the Transport Sector Always Detrimental to Consumers?," CEPR Discussion Papers 6185, C.E.P.R. Discussion Papers.
  7. Holmes, Thomas J. & Jr., James A. Schmitz, 2001. "A gain from trade: From unproductive to productive entrepreneurship," Journal of Monetary Economics, Elsevier, vol. 47(2), pages 417-446, April.
  8. Robert J. Gordon, 1991. "Productivity in the Transportation Sector," NBER Working Papers 3815, National Bureau of Economic Research, Inc.
  9. Kristian Behrens & Carl Gaigné & Jacques-François Thisse, 2009. "Industry location and welfare when transport costs are endogenous," Working Papers 32349, Institut National de la Recherche Agronomique, France.
  10. Osborne, Theresa & Pachon, Maria Claudia & Araya, Gonzalo Enrique, 2014. "What drives the high price of road freight transport in Central America ?," Policy Research Working Paper Series 6844, The World Bank.
  11. Behrens, Kristian & Gaigné, Carl & Thisse, Jacques-François, 2009. "Industry location and welfare when transport costs are endogenous," Journal of Urban Economics, Elsevier, vol. 65(2), pages 195-208, March.

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