An econometric model of the barge and rail freight market is developed so that factors which influence barge and rail rates for export-bound grain from Midwest to Mexican Gulf can be better understood. Three-stage least squares method is used to estimate the system of four equations that constitute the model. A number of identified factors turned out to be significant in determining grains rail and barge transportation rates. Given the interactive nature of supply and demand processes it is difficult to pinpoint a single most important factor. Yet it is clear that a substitute nature of the two transportation modes in addition to direct price-quantity relationship determine most of the transportation rates. (C) 2000 Elsevier Science Ltd. All rights reserved.
|Original language||English (US)|
|Number of pages||11|
|Journal||Transportation Research Part E: Logistics and Transportation Review|
|State||Published - Jun 2000|
ASJC Scopus subject areas
- Business and International Management
- Civil and Structural Engineering