| Sumario: | The article presents information on derived demand function for freight transport. In analyzing the demand for freight transportation, it is important to recognize that it has the following characteristics, first, freight transportation is a productive input and should be treated analytically like any other input, second, the full costs of transportation include the rate and inventory costs associated with shipping and storage, and third, the rate and the shipment characteristics affecting inventory costs are typically jointly determined by the firm. This suggests that a fruitful approach to analyzing freight demand would be to derive an explicit input demand equation that includes rates and the shipment attributes affecting inventory costs and that uses estimation techniques that correct for the endogeneity of the rates and the relevant shipment characteristics. This article attempts to correct these deficiencies by deriving an explicit freight demand equation from a general cost function, which recognizes the specific interrelationship between rates and inventory costs as expressed through the relevant shipment characteristics. As such, it should place the theoretical foundations of the analysis on much firmer footing and make the interpretation of the results considerably easier than that of previous studies. This article has attempted to improve upon existing specifications and estimations of freight demand in two important ways.
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