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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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  • Ying, John S, 1990. "The Inefficiency of Regulating a Competitive Industry: Productivity Gains in Trucking Following Reform," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 191-201, May.
    • Handle: RePEc:tpr:restat:v:72:y:1990:i:2:p:191-201
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    1. Paul Ruud, "undated". "Restricted Least Squares Subject to Monotonicity and Concavity Constraints," Working Papers _007, University of California at Berkeley, Econometrics Laboratory Software Archive.
    2. 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.
    3. Theresa Osborne & Maria Claudia Pachon & Gonzalo Enrique Araya, 2013. "What Drives the High Price of Road Freight Transport in Central America?," World Bank Publications - Reports 17845, The World Bank Group.
    4. Georges Dionne & Robert Gagné, 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.
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    9. John Bitzan & Wesley Wilson, 2007. "Industry costs and consolidation: efficiency gains and mergers in the U.S. railroad industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(2), pages 81-105, March.
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    12. Lewis, Justin, 2013. "Veiled Waters: Examining the Jones Act's Consumer Welfare Effect," MPRA Paper 51469, University Library of Munich, Germany.
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    15. Paola Garrone, 1995. "The Adoption Of Technological Innovations: Dynamic And Cumulative Effects In Telecommunications Networks," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(1), pages 1-16.
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    18. Wong, Lawrence, 2001. "Measuring technological change in the U.S. motor carrier industry," Research in Transportation Economics, Elsevier, vol. 6(1), pages 25-54, January.
    19. C G Woudsma & P S Kanaroglou, 1994. "Deregulation of the Motor Carrier Industry: A Canadian Example," Environment and Planning A, , vol. 26(3), pages 343-360, March.
    20. Chalfant, James & Wallace, Nancy, 1991. "Testing the Translog Specification with the Fourier Cost Function," CUDARE Working Papers 198581, University of California, Berkeley, Department of Agricultural and Resource Economics.

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