IN THE PAPER A TRANSLOG TRANSPORT DEMAND MODEL IS ESTIMATED TO MEASURE PRICE AND QUALITY OF SERVICE DEMAND ELASTICITIES FOR RAIL AND MOTOR-CARRIER SHIPMENTS OF ASSEMBLED AUTOMOBILES. EVIDENCE IS SHOWN THAT RAIL TRANSPORT HAS MUCH TO GAIN FROM SPEED IMPROVEMENTS AND ALSO FROM REDUCED RATES. IT WAS ALSO CONSIDERED THAT THE DEMAND FOR LORRY TRANSPORT IS MORE SENSITIVE THAN APPRECIATED TO CHANGES IN MOTOR CARRIER RATES. THE ELASTICITY ESTIMATES PROVIDE A FRAMEWORK IN WHICH THE POSSIBLE IMPACT OF TRANSPORT RATE DEREGULATION CAN BE ASSESSED TO THE EXTENT THAT DEREGULATION LEADS TO LOWER CHARGES AND/OR IMPROVED QUALITY OF SERVICE IN THE DEREGULATED MODE. THE SHORTCOMING OF THE TRANSLOG MODEL WITH RESPECT TO DATA REQUIREMENTS IS PRESENTED AS AN OBSTACLE TO EXTENSIONS TO OTHER COMMODITY GROUPS. (Author/publisher).
Abstract