Directional Imbalance in Transport Prices: An Application to Inland Shipping in North-West Europe
AbstractAccording to theory, the effect of carriers' transport costs on freight prices depends on the directional imbalance in transport flows. Using data on inland waterway transport, we demonstrate that when the ratio of export to import trips doubles, the marginal effect of carriers' transport costs on freight prices of goods exported increases by about 30 percent. Our identifying methodology is based on an innovative approach using natural variation in river water levels that affect the costs of transport.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-134/3.
Date of creation: 26 Sep 2011
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directional imbalance; transport prices;
Find related papers by JEL classification:
- R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Other Production and Pricing Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-09 (All new papers)
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