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Transportation Deregulation and Interregional Competition in the Northeastern Feed Economy

Published online by Cambridge University Press:  10 May 2017

Thomas F. Randolph  and
David R. Lee
Thomas F. Randolph
Affiliation:
Department of Agricultural Economics, Cornell University
David R. Lee
Affiliation:
Department of Agricultural Economics, Cornell University
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Abstract

The effects of rail deregulation on feed transportation in the Northeast are examined through construction of a spatial equilibrium model of the Northeastern feed industry. Short-run and long-run effects of deregulation are analyzed through incorporation of rail rate structures for 1981 and 1984, respectively, into model simulations and comparison with pre-deregulation base year results (1980). The results show that the Northeast feed economy has generally benefited from rail deregulation which has led to lower transportation costs, lower feed costs and an enhanced competitive position relative to the Southeastern U.S.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 15 , Issue 2 , October 1986 , pp. 93 - 107
Copyright
Copyright © 1986 Northeastern Agricultural and Resource Economics Association 

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Footnotes

The authors wish to thank George Allen, ERS/USDA, for providing regional feed consumption data for this study, Richard Aumiller and Roderick Portine, Agway Inc., for furnishing much of the rail rate data, James Pratt for assistance in adapting the estimation algorithm, and Richard Boisvert and B. F. Stanton for helpful discussions.

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