The Impact of Information Technology on Motor Carrier Productivity

This study examines the relationship between motor carrier productivity, marketing strategy, and use of information technology for a sample of U.S. general freight commodity carriers. We use a unique data set containing information on firm marketing strategy and information technology use collected in a survey of Class I and II motor carrier firms (U.S. Department of Transportation, 1999). The measure of productivity used here is the non-parametric Malmquist Index as explained in Grosskopf (1993) and previously applied to general freight motor carriers by McMullen and Okuyama (2000). The Malmquist Index is decomposed into two components: economic efficiency change (EC) and technical efficiency change (TC). A tobit model regression model is used to examine the relationship between firm productivity, marketing strategy, and use of information technology. Information technologies included in the tobit analysis are electronic data interchange (EDI) and satellite communications (SATCOM). We also include firm size, use of owner-operators, and percent unionization as explanatory variables in the tobit regression. Results indicate that use of EDI has a positive and significant impact on economic efficiency (EC). Firms that try to market their product by providing service at the "lowest freight rate" are found to exhibit greater technical efficiency (TC), suggesting that productivity and cost measures that ignore marketing strategy may be biased. Finally, economic efficiency (EC) is found to be significantly greater for firms that are more heavily unionized

Determinants of VMT in Urban Areas:A Panel Study of 87 U.S. Urban Areas 1982-2009

This paper uses econometric techniques to examine the determinants of vehicle miles traveled (VMT) in a panel study using data from a cross section of 87 U.S. urban areas over the period 1982-2009. We use standard OLS regression as well as two-stage least squares techniques to examine the impact of factors such as urban density, lane-miles, per capita income, real fuel cost, transit mileage, and various industry mix variables on per capita VMT. We use a distributed lag model to estimate long-run elasticities and find that the long-run price elasticity of demand for per capita VMT is approximately five times larger than in the short run. Preliminary empirical results show the per capita demand for VMT in urban areas is positively and significantly impacted by lane miles, personal income, and the percent of employment in the construction and public sectors. Fuel price and transit use and the percent of employment in manufacturing, retail, and wholesale sectors are all found to be statistically significant and negatively related to VMT per capita. After correcting for endogeneity, urban population density exerts a negative, but not always statistically significant, impact on per capita VMT. Finally, per capita VMT is found to differ significantly by geographic region, being higher the more western and the larger the population size of an urban area

AN ANALYSIS OF THE USE OF GRADES AND HOUSEBRAND LABELS IN THE RETAIL BEEF MARKET

The congruence of beef consumersÂ’ purchases with their stated preferences regarding internal fat content are examined. The role of U.S. Department of Agriculture (USDA) grades and housebrand labeling of beef in providing information to consumers is studied in the theoretical framework of search theory. The empirical results indicate that the current system of USDA grades and housebrand labels is not disseminating information regarding internal fat content effectively to consumers. Suggestions are made for providing consumers with better information and education necessary to increase congruence of expressed preferences regarding internal fat content and actual beef purchases.Food Consumption/Nutrition/Food Safety, Livestock Production/Industries,

Pricing in Retail Gasoline Markets

Although fuel costs represent over half of the per mile cost of driving an automobile, vehicle miles traveled are relatively inelastic with respect to changes in gasoline prices. Thus, when there are large increases in gasoline prices as there have been on occasion over the past few years, there have been concerns raised regarding the possibility of anti-competitive behavior on the part of gasoline retailers. The purpose of this paper is to examine price-cost margins for retail gasoline stations in local markets and to determine whether movements in these margins indicate the presence of such behavior. This study uses a unique proprietary data set from an extensive pricing survey that was collected twice weekly for 25 local markets in Oregon. Using a VAR specification, evidence of tacit collusion is tested for and found as indicated by downward price stickiness. Price leadership is observed in several markets, but this behavior is not found to have a significant impact on price-cost margins when compared with markets in which price leadership is not observed. This result supports the hypothesis that price leadership serves to signal price changes in the face of volatile costs in very competitive retail gasoline markets. Other factors, such as whether the firm was a known low-price firm, located in an isolated area, whether the firm was selling unbranded or branded gasoline, and whether the firm was located on an interstate exit, are found to be important and significant determinants of price-cost margins for retail gasoline stations

Techniques for Assessing the Socio-Economic Effects of Vehicle Mileage Fees

This project considers the socio-economic impacts of the new highway user fee structure made possible by advanced technology. The fee structure also has implications for land use and healthy communities ( urban/rural, income distributional, and environmental impacts). The 2001 Oregon Legislature created the Road User Fee Task Force (RUFTF) to make recommendations regarding a potential replacement for the gasoline tax. A vehicle mile tax has subsequently been proposed as the replacement. Preliminary work has been devoted to exploring technical and institutional options for implementation of such a charge. OSU researchers have developed the technology and there is a pilot project in progress in the Portland area that tests charging vehicle mile road user fees using this technololgy. Media feedback on the proposed vehicle-mile tax has focused on 1) the possible (dis) incentives it could provide to the adoption of more fuel efficient vehicles 2) how the tax may unevenly impact drivers in urban versus rural Oregon, and 3) whether the change in tax structure will have an adverse impact on low income groups. The purpose of this study is to develop a model which provides an analytical framework from which to quantify the impact of changing to the proposed vehicle-mile tax. ODOT will use the results from this study to help formulate the specific form of the vehicle-mile tax (flat tax, a graduated tax, a higher tax for less fuel efficient vehicles, a differential tax for urban/rural areas, etc.). Perhaps just as important is the fact that ODOT needs some quantitative information on the socio-economic impact of such a tax, to use in public relations. A huge factor in determining the ultimate adoption of such a tax structure will be the public acceptance of this change and, in turn, they need to have full information on what it will do. Given the decreasing ability of the gasoline tax to cover the costs of the highway system, an alternative financing scheme is necessary to insure future mobility. There are also implications for environmental stewardship as a vehicle-mile tax has also been suggested as an emissions tax. Finally, once the technology is in place for a vehicle-mile tax, it becomes possible to implement a vehicle-mile tax that may vary by time of day and location, providing an efficient congestion pricing tool. The FHWA has five focus areas for policy research as listed in USDOT, Research, Development, and Technology Plan, 6th edition, FY 2005. One is developing analytical tools to evaluate the impacts of a broad range of highway policy options (p. 4-12). Under Future Direction in Highway Finance: to examine the long-term viability of existing highway financing mechanisms and explore issues relating to alternatives, including the future role of the private sector in providing and managing transportation resources. And under Legislative Analysis and Strategic Planning: Support the development, analysis, and implementation of transportation legislation and address strategic initiatives that are likely to influence future legislative and political directions. Thus, this project is consistent with national and state transportation strategies and priorities

The Relationship Between VMT and Economic Activity

Vehicle miles traveled (VMT) in the U.S. have exhibited an upward trend over time similar to that observed for gross domestic product (GDP) and personal income (PI). While conventional wisdom suggests that economic growth leads to more driving and thus higher VMT, it is theoretically possible that the causation could also be the other way around. If causation is from VMT to GDP, then legislation such as the Federal Surface Transportation Policy and Planning Act of 2009’s directive to annually reduce national per capita VMT could potentially have an adverse impact on overall economic activity. This study uses times series techniques to empirically test for Granger causality between VMT and various measures of national economic activity over time. In most circumstances the causal relationship is found to be from economic activity to VMT, confirming conventional wisdom and suggesting that exogenous shocks to VMT would not negatively impact national GDP. The relationship between national VMT and GDP is found to be dependent on the stage of the business cycle, in particular GDP leads VMT in economic upturns or normal times, but VMT tends to lead GDP recessions. For the 98 urban areas included in this study no significant causal relationship was found between VMT and economic activity in either direction. A derived demand analysis was conducted to explore the relationship between VMT and economic activity on a more micro level to determine where potential adverse impacts from VMT reduction policies might arise and how policy could be formulated to mitigate those impacts. Factors found to significantly contribute to the demand for VMT in urban areas, included lane miles, personal income, population density, fuel cost, transit use, and the percent of employment in the construction or wholesale sectors. Both transit use and population density were found to be negatively related to VMTPC and per capita VMT was found to be higher the more western and the larger the population size of an urban area

Freight Performance Measures: Approach Analysis

This report reviews the existing state of the art and also the state of the practice of freight performance measurement. Most performance measures at the state level have aimed at evaluating highway or transit infrastructure performance with an emphasis on passenger transportation. Freight performance measurement ultimately requires evaluation of performance of the entire freight transportation system, which includes highways, waterways, rail, air, and modal connections. This requires considerable expansion of thinking beyond the traditional focus of state Departments of Transportation (DOTs) on highway performance. This project builds upon past and current work in the area of freight performance measurement and incorporates recent literature on the development of these measures. A thorough review of state practices is conducted by surveying state DOT web sites and reporting on the measures most frequently recommended and used by individual states for planning purposes. The emphasis is on the application of performance measures to freight transportation, and the usefulness and limitations of these measures, is discussed. Recommendations are made for potential freight performance measures for each freight mode (air, rail, trucking, and water/marine), including initial information on data availability, validity, and feasibility given existing data for Oregon. Future research needs discussed include additional data collection and development required to support performance measures, what is needed to track system performance changes over time, and testing of measures for their sensitivity and usefulness for policy and decision-makin