Re-evaluating Returns to Scale in Transport

Kefeng Xu

38 citations0/0 files storedJournal of Transport Economics and Policy

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Transport and Economic Policies Merger and Competition Analysis Transport and Logistics Innovations

Abstract

The paper argues that output characteristics are positively correlated with, and influenced by, firm size. When firm size increases, output characteristics also change in a direction that reduces unit costs. Drawing on evidence from the US trucking industry, an appropriate specification indicates that economies of scale may well exist.

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References

1978On the Pooling of Time Series and Cross Section Data 1984Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ 1981Productivity growth, scale economies, and capacity utilization in US railroads, 1955-74.1987AIRLINE COMPETITION IN DEREGULATED MARKETS: THEORY, FIRM STRATEGY, AND PUBLIC POLICY 1986Analytical Studies in Transport Economics 1991The Economic Effects of Surface Freight Deregulation 1986Network effects and the measurement of returns to scale and density for U.S. railroads 1990Deregulated airline markets

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