IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v36y2000i1p21-39.html
   My bibliography  Save this article

Railroad wheat transportation markets in the central plains: modeling with error correction and directed graphs

Author

Listed:
  • Bessler, David A.
  • Fuller, Stephen W.

Abstract

Time series methods are used to study the dynamics of regional, export-wheat, railroad rates linking seven central US regions to Texas Gulf ports. Research focuses on the extent and nature of regional rate interactions to determine whether regional rail transportation rates are established independently, through interaction and/or dominated by several regional leaders. Analysis is carried out on 1988-1994 public waybill data for seven Business Economic Areas (BEA) located in Kansas, Oklahoma, Texas and Colorado: these regions originate virtually all of the eight million tons of hard red winter wheat annually shipped to Texas Gulf ports. Results show all rail transportation markets linked in varying degrees. Some regions are near-independent or highly exogenous regarding rate-setting, while others interact with and to rates established in other regions. Regions that are dominated by a single carrier tend to be more independent and insulated regarding rate-setting. Export rates in regions dominated by the Union Pacific (UP) generally account for a significant variation in the rates of other regions. Data show the UP to have been aggressive in providing incentives for country elevators to consolidate for purposes of making unit train shipments, thus their presumed influence on rates of other regions. As expected, export rates for regions with substantial storage and transhipment facilities are sensitive to export rates of regions which ship to the transhipment facilities. Finally, results suggest that rate-setting in a particular region is in part a function of the dominant railroad's management and its aggressiveness, an expected outcome in an oligopolistic market.

Suggested Citation

  • Bessler, David A. & Fuller, Stephen W., 2000. "Railroad wheat transportation markets in the central plains: modeling with error correction and directed graphs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 36(1), pages 21-39, March.
  • Handle: RePEc:eee:transe:v:36:y:2000:i:1:p:21-39
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554599000150
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oxley, Les & Reale, Marco & Wilson, Granville Tunnicliffe, 2009. "Constructing structural VAR models with conditional independence graphs," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 79(9), pages 2910-2916.
    2. Michael S. Haigh & David A. Bessler, 2004. "Causality and Price Discovery: An Application of Directed Acyclic Graphs," The Journal of Business, University of Chicago Press, vol. 77(4), pages 1099-1121, October.
    3. Haigh, Michael S. & Bryant, Henry L., 2001. "The effect of barge and ocean freight price volatility in international grain markets," Agricultural Economics, Blackwell, vol. 25(1), pages 41-58, June.
    4. Taylor, Richard D. & Koo, Won W., 2009. "Expected Changes in China's Grain and Oilseed Industries and Implications for the U.S. and World Agriculture," Agribusiness & Applied Economics Report 51991, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Elvin AFANDI & Majid KERMANI, 2014. "Financing Obstacles of Bangladeshi Firms: Evidence from Pre-Crisis and Post-Crisis Periods," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(9), pages 1158-1174, September.
    6. Haigh, Michael S. & Bryant, Henry L., 2001. "The effect of barge and ocean freight price volatility in international grain markets," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 25(1), June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:36:y:2000:i:1:p:21-39. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.