A re-examination of four decades’ deregulation effect on competition and productivity of the US freight rail transportation industry
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
The purpose of this study is to compare the competition and productivity of the US freight rail transportation industry for the past 41 years (1980 ∼ 2020), which consists of the two periods, before and after the abolishment of the Interstate Commerce Commission (ICC) in 1995.This study investigates any relationships between the market concentration index values and labor productivity values in the separate two periods, and how the existence of a regulatory body in the freight transportation market impacted the productivity of the freight rail transportation industry by using a Cobb–Douglas production function on annual financial statement data from the US stock exchange market.This study found that, after the abolishment of the ICC: (1) the rail industry became less competitive, (2) even if the rail industry had an increasing labor productivity trend, there was a strong negative correlation between the market concentration index and labor productivity and (3) the rail industry’s total factor productivity was decreased.This study is to find empirical evidence of the effect of the ICC abolishment on the competition and productivity levels in the US freight rail transportation industry using a continuous data set of 41-year financial statements, which is unique compared to previous studies.
Abstract
The purpose of this study is to compare the competition and productivity of the US freight rail transportation industry for the past 41 years (1980 ∼ 2020), which consists of the two periods, before and after the abolishment of the Interstate Commerce Commission (ICC) in 1995.This study investigates any relationships between the market concentration index values and labor productivity values in the separate two periods, and how the existence of a regulatory body in the freight transportation market impacted the productivity of the freight rail transportation industry by using a Cobb–Douglas production function on annual financial statement data from the US stock exchange market.This study found that, after the abolishment of the ICC: (1) the rail industry became less competitive, (2) even if the rail industry had an increasing labor productivity trend, there was a strong negative correlation between the market concentration index and labor productivity and (3) the rail industry’s total factor productivity was decreased.This study is to find empirical evidence of the effect of the ICC abolishment on the competition and productivity levels in the US freight rail transportation industry using a continuous data set of 41-year financial statements, which is unique compared to previous studies.
참고문헌 (39)
- Why Is Productivity Correlated with Competition?, "Backus, M.", National Bureau of Economic Research, ~, pp.Working Paper 25748 (2019)
- "Cobb-douglas production function" (2008)[URL]
- "Beyond fixed versus random effects: a framework for improving substantive and statistical analysis of panel, time-series cross-sectional, and multilevel data" (2009)[URL]
- Bereskin, C., "Econometric estimation of the effects of deregulation on railway productivity growth", Transportation Journal, 35(1), pp.34~43 (1996)
- Berndt, E., "Cost effects of mergers and deregulation in the US rail industry", Journal of Productivity Analysis, 4(1-2), pp.127~144 (1993)[DOI]
- "How America’s Supply Chains Got Railroaded" (2022)[URL]
- "Total factor productivity" (2006)[URL]
- Coyle, J., "Transportation, A Global Supply Chain Perspective" (2015), Cengage
- Duke, J., "Multifactor productivity in railroad transportation", Monthly Labor Review, 115(8), pp.49~58 (1992)
- Enaami, M., "Multicollinearity problems in cobb-douglas problem function", Journal of Applied Sciences, 11(16), pp.3015~3021 (2011)[DOI]
- Fischer, J., "Transportation Economic Regulation in Practice", TR NEWS, No. 315, ~ (2018)
- Friedlaender, A., "Rail costs and capital adjustments in a quasi-regulated environment", Journal of Transport Economics and Policy, 27(2), pp.131~152 (1993)
- Gallamore, R., "Perspective on Two-Score Years of Railroad Deregulation", TR News, 22~27 (2018)
- Gordon, R., "Output Measurement in the Service Sectors" (1992), University of Chicago Press
- Hoechle, D., "Robust standard errors for panel regressions with cross-sectional dependence", The Stata Journal, 7(3), pp.281~312 (2007)[DOI]
- "Competition and Productivity: A Review of Evidence" (2010)[URL]
- Ingene, C. A., "Estimation of department store production function", International Journal of Physical Distribution and Logistics Management, 29(7-8), pp.453~465 (1999)
- King, R. P., "Modeling productivity in supermarket operations : incorporating the impacts of store characteristics and information technologies", Journal of Food Distribution Research, 35(2), pp.42~55 (2004)
- "The Signs and Symptoms of Regulatory Obsolescence in Network Industries" (2019)[URL]
- Lim, S., "Short-run total cost change and productivity of US Class I railroads", Journal of Transport Economics and Policy, 42(1), pp.155~188 (2008)
- Marshall, L., "Assessing wholesale competition in the Australian national electricity market", Energy Policy, 149, pp.112066~ (2021)[DOI]
- Martland, C., "Source of financial improvement in the US railroad industry, 1966-1995", Proceedings, Transportation Research Forum, Annual Meeting, pp.58~79 (1997)
- Martland, C., "Productivity and Prices in the U.S. rail industry: experience from 1965 to 1995and prospects for future", Journal of Transportation Research Forum, 38, pp.12~25 (1999)
- Martland, C., "Productivity, profitability and pricing in the US rail freight industry", Journal of the Transportation Research Forum, 45(3), pp.93~108 (2006)[DOI]
- Martland, C., "Productivity improvement in the U. S. Rail freight industry 1980-2010", Journal of the Transportation Research Forum, 51(3), pp.83~107 (2012)[DOI]
- "US railroad efficiency: a brief economic overview" (2005)[URL]
- "Surface Freight Transportation Deregulation" (2007)[URL]
- Schmalensee, R., "Modernizing U. S. Freight rail regulation", Review of Industrial Organization, 49(2), pp.133~159 (2016)[DOI]
- Shi, F., "Railroad productivity analysis : case of the American Class I railroads", International Journal of Productivity and Performance Management, 60(4), pp.372~386 (2011)
- Shin, S., "Effects of RFID technology on efficiency and profitability in retail supply chains", Journal of Applied Business Research, 30(3), pp.633~645 (2014)[DOI]
- Shin, S., "An empirical study of RFID productivity in the U. S. Retail supply chain", International Journal of Production Economics, 163, pp.89~96 (2015)[DOI]
- Spychalski, J., "From ICC to STB : continuing vestiges of US Surface transport regulation", Journal of Transport Economics and Policy, 31(1), pp.131~136 (1997)
- "A study of competition in the U.S. Freight railroad industry and analysis of proposals that might enhance competition" (2009)[URL]
- "The U.S. productivity slowdown: an economy-wide and industry-level analysis" (2021)[URL]
- "Transportation economics trends and measurement concept" (2016)[URL]
- "Horizontal merger Guideline" (1997)[URL]
- Vellturo, C., "Deregulation, mergers, and cost savings in Class I U.S. railroads, 1974-1986", Journal of Economics and Management Strategy, 1(2), pp.339~370 (1992)[DOI]
- Wilson, W., "Cost savings and productivity in the railroad industry", Journal of Regulatory Economics, 11(1), pp.21~40 (1997)[DOI]
- Winston, C., "U. S. Industry adjustment to economic deregulation", Journal of Economic Perspectives, 12(3), pp.89~110 (1998)[DOI]
