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Estimation Of Modal Demand Elasticities In Grain Transportation

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  • Wilson, William W.

Abstract

Recent legislation in the transportation industry has stimulated a move toward more flexibility in railroad pricing and has consequently provided the impetus for the analysis of transportation demand. Modal demands for grain transportation are analyzed in this paper using a derived demand approach assuming dual relationships between production and cost functions of shippers' distribution activities. Hypotheses were introduced in the empirical specification about the effects of rail car shortages and the introduction of multiple-car rail rates. The model was estimated and hypotheses tested in the case of eastbound wheat and barley shipments form North Dakota.

Suggested Citation

  • Wilson, William W., 1984. "Estimation Of Modal Demand Elasticities In Grain Transportation," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(2), pages 1-15, December.
    • Handle: RePEc:ags:wjagec:32135
    DOI: 10.22004/ag.econ.32135
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    References listed on IDEAS

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    5. Fuller, Stephen W. & Shanmugham, Chiyyarath V., 1981. "Effectiveness Of Competition To Limit Rail Rate Increases Under Deregulation: The Case Of Wheat Exports From The Southern Plains," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(2), pages 1-9, December.
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    8. Gregory H. Michaels & Richard A. Levins & Jerry E. Fruin, 1982. "Rail/Truck Competition for Grain Traffic in Minnesota: Implications for Rate Making," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(2), pages 276-279.
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    10. Richard C. Levin, 1978. "Allocation in Surface Freight Transportation: Does Rate Regulation Matter?," Bell Journal of Economics, The RAND Corporation, vol. 9(1), pages 18-45, Spring.
    11. Tae Hoon Oum, 1979. "A Cross Sectional Study of Freight Transport Demand and Rail-Truck Competition in Canada," Bell Journal of Economics, The RAND Corporation, vol. 10(2), pages 463-482, Autumn.
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    Cited by:

    1. Jo, Jungkeon & Secor, William, 2022. "Demand for Rail Transportation of Grain to the Southeastern U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322453, Agricultural and Applied Economics Association.
    2. Wilson, William W., 1994. "Demand For Wheat Classes By Pacific Rim Countries," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(1), pages 1-13, July.
    3. Wilson, William W. & Wilson, Wesley W. & Koo, Won W., 1987. "Intermodal Competition and Pricing in Grain Transportation: A Description and Comparison of Methods," Agricultural Economics Reports 23194, North Dakota State University, Department of Agribusiness and Applied Economics.

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