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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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Cited by:
  1. Robert J. Gordon, 1992. "Productivity in the Transportation Sector," NBER Chapters, National Bureau of Economic Research, Inc, in: Output Measurement in the Service Sectors, pages 371-427 National Bureau of Economic Research, Inc.
  2. Holmes, Thomas J. & Jr., James A. Schmitz, 2001. "A gain from trade: From unproductive to productive entrepreneurship," Journal of Monetary Economics, Elsevier, Elsevier, vol. 47(2), pages 417-446, April.
  3. Kristian Behrens & Carl Gaigné & Jacques-François Thisse, 2009. "Industry location and welfare when transport costs are endogenous," Working Papers, Institut National de la Recherche Agronomique, France 32349, Institut National de la Recherche Agronomique, France.
  4. Lewis, Justin, 2013. "Veiled Waters: Examining the Jones Act's Consumer Welfare Effect," MPRA Paper 51469, University Library of Munich, Germany.
  5. 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.
  6. 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, The World Bank 6844, The World Bank.
  7. Behrens, Kristian & Carl Gaigne & Jacques-Francois Thisse, 2006. "Is the regulation of the transport sector always detrimental to consumers?," CIRJE F-Series, CIRJE, Faculty of Economics, University of Tokyo CIRJE-F-455, CIRJE, Faculty of Economics, University of Tokyo.
  8. BEHRENS, Kristian & GAIGNE, Carl, . "Density (dis)economies in transportation: revisiting the core-periphery model," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -1944, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. 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.
  10. 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, Programme National Persée, vol. 126(5), pages 63-76.
  11. Kristian Behrens & Carl Gaigné & Gianmarco I.P. Ottaviano & Jacques-François Thisse, 2006. "How density economies in international transportation link the internal geography of trading partners," Working Papers, Institut National de la Recherche Agronomique, France 9904, Institut National de la Recherche Agronomique, France.

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