The cost structure of U.S. railroad industry, 1980-81

摘要: The proposed Coal Rate Guidelines published by the Interstate Commerce Commission imply that railroad industry can raise rates on so called "captive" coal to achieve goal of revenue adequacy. Revenue adequacy is defined as a level earnings sufficient enable carrier meet all its expenses, retire reasonable amount debt, cover plant depreciation and obsolescence, earn return investment adequate attract new capital. If are implemented traffic, it expected similar guidelines will be applied other commodities, such grains, fertilizers, chemicals, agricultural products. emphasize inelastic demand for transportation coal, but ignore cost side structures crucial part in achieving adequacy;To estimate potential from saving point view, two flexible functional forms, translog generalized Leontief models were used behavior under different scenarios. results indicate that: (1) has substantial returns traffic density average length haul; (2) small firm size; (3) net effects density, haul, size large positive; (4) capital labor highly substitutable while fuel, fuel less substitutable; (5) costs major component total costs; (6) input price elasticities than unity; (7) had excess capacity 1980-81; (8) policy can, part, 1980-81;This study based 1980-81 Class I data, hence interpretation limited structure these years. As experienced rapid technological change, further research may needed when data become available. Moreover, model specification improved if aggregate