The Economic Effects of Surface Freight Deregulation

Abstract

This book presents a quantitative assessment of the effects of surface freight deregulation on the welfare of shippers, motor carriers, railroads, and labor. The authors find that deregulation has substantially benefited shippers and railroads at some cost to the less-than-truckload segment of the motor carrier industry and to the rail and motor carrier labor force, for an annual net gain to the nation of nearly $16 billion (1988 dollars). Because the industry is still adjusting to deregulation, the authors identify how further increases in competition and operating efficiency can provide additional benefits to shippers and carriers. The authors recommend policies for the rail and motor carrier industries to further these objectives.