A DERIVED DEMAND FUNCTION FOR FREIGHT TRANSPORTATION.

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 a...

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Publicado en:Review of Economics & Statistics Vol. 62; no. 3; pp. 432 - 442
Autores principales: Friedlaender, Ann F., Spady, Richard H.
Formato: Artículo
Publicado: MIT Press Aug80
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      pub: MIT Press
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        atl: A DERIVED DEMAND FUNCTION FOR FREIGHT TRANSPORTATION.
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          Friedlaender, Ann F.
          Spady, Richard H.
        affil:
          Massachusetts Institute of Technology.
          Swarthmore College.
      su:
        Demand function
        Freight & freightage
        Transportation
        Inventories
        Cost
        Maritime shipping
        Shipment of goods
      sug:
        subj:
          Demand function
          Freight & freightage
          Transportation
          Inventories
          Cost
          Maritime shipping
          Shipment of goods
      ab: 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.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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