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Analyzing the determinants of freight shipper's behavior: own account versus purchased transport

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  • Cristina Borra

    ()

  • Luis Palma

    ()

Abstract

Previous work in the demand for freight transportation has focused in the rail-truck substitution problem, leaving aside the prior own-account versus third-party trade-off, often found in transportation decision-making. The purpose of this paper is to analyze shippersÂ’ behavior relative to this question, paying particular attention to whether the decision to use a private form of transport is taken on a short term or on a medium term horizon. In order to provide a quantitative evaluation, as an illustrative case, the models developed are tested on data gathered by means of a sample survey conducted to Andalusian enterprises belonging to the food industry. JEL classification: R410: Transportation: Supply, Demand and Congestion. C350: Econometric Methods: Multiple/Simultaneous Equation Models: Truncated and Censored Models.

Suggested Citation

  • Cristina Borra & Luis Palma, 2004. "Analyzing the determinants of freight shipper's behavior: own account versus purchased transport," ERSA conference papers ersa04p163, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa04p163
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    1. Inaba, Fred S & Wallace, Nancy E, 1989. "Spatial Price Competition and the Demand for Freight Transportation," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 614-625, November.
    2. Daughety, Andrew F & Inaba, Frederick S, 1981. "An Analysis of Regulatory Change in the Transportation Industry," The Review of Economics and Statistics, MIT Press, vol. 63(2), pages 246-255, May.
    3. Winston, Clifford, 1981. "A Disaggregate Model of the Demand for Intercity Freight Transportation," Econometrica, Econometric Society, vol. 49(4), pages 981-1006, June.
    4. Lung-Fei Lee, 1982. "Some Approaches to the Correction of Selectivity Bias," Review of Economic Studies, Oxford University Press, vol. 49(3), pages 355-372.
    5. Ana Matas, 1991. "La demanda de transporte urbano: un análisis de las elasticidades y valoraciones del tiempo," Investigaciones Economicas, Fundación SEPI, vol. 15(2), pages 249-267, May.
    6. Small, K. & Winston, C., 1998. ""The Demand for Transportation: Models and Applications"," Papers 98-99-6, California Irvine - School of Social Sciences.
    7. Friedlaender, Ann F & Spady, Richard H, 1980. "A Derived Demand Function for Freight Transportation," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 432-441, August.
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