1980
DOI: 10.2307/1927111
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A Derived Demand Function for Freight Transportation

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Cited by 76 publications
(38 citation statements)
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“…Oum reported relatively high Allen elasticities of substitution (σ) between railroads and trucks for transporting the output of these manufacturing industries, declaring, "the two modes are intrinsically highly substitutable in moving most commodities, but less so for lumber." (p. 476) He found much larger cross-price elasticities than Friedlaender and Spady (1980) found. On the other hand, Oum's own-price elasticities were smaller than Friedlaender and Spady's (1980) and were generally less than or equal to one.…”
mentioning
confidence: 77%
See 1 more Smart Citation
“…Oum reported relatively high Allen elasticities of substitution (σ) between railroads and trucks for transporting the output of these manufacturing industries, declaring, "the two modes are intrinsically highly substitutable in moving most commodities, but less so for lumber." (p. 476) He found much larger cross-price elasticities than Friedlaender and Spady (1980) found. On the other hand, Oum's own-price elasticities were smaller than Friedlaender and Spady's (1980) and were generally less than or equal to one.…”
mentioning
confidence: 77%
“…Friedlaender and Spady (1980) estimated transportation share equations derived from the cost functions of a sample of manufacturing industries using data from the Census of Transportation and calculated factor demand elasticities for railroad and trucking transportation services from these equations. It turned out that the less-than-truckload general freight segment dominated the trucking data from the Census of Transportation.…”
Section: Demand Functions-trucking and Railroadsmentioning
confidence: 99%
“…Clark et al (2005)] An additional measure of elasticity, the cross-price elasticity, is used to estimate which of two interchangeable modes will be substituted for the other when there is a price increase in one of the modes, as follows: a cross-price elasticity greater than zero indicates that the two modes are substitutes and there is a potential for mode shift; an elasticity of zero indicates that there is no relationship; and an elasticity less than zero indicates that the modes complement each other and there is a potential for mode shift. Figure 4.2 presents the cross-price elasticities between rail and truck from studies reviewed in the Navigation Economic Technologies Program report (Oum 1989;Friedlaender and Spady 1980;Winston 1981;Abdelwahab 1998). There is some variation, but most commodities and modes are fairly inelastic, supporting the idea that, in many cases, mode shift potential is small based on price changes alone.…”
Section: Prices and Modal Shiftsmentioning
confidence: 95%
“…We used research methods from life-cycle analysis, transportation economics, and local food case-study literature in formulating and conducting the survey (Friedlaender & Spady, 1980;Hummels, 2007;King, Hand, & DiGiacomo, 2013;Moneta, 1959;Mundler & Rumpus, 2012;Wang et al, 2000). For life-cycle analysis accounting, the research unit of interest should be clearly defined (Rebitzer et al, 2004).…”
Section: Local Farmer Surveymentioning
confidence: 99%