The economic theory of regulation and trucking deregulation: Shifting to the state level
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.Get Access
Federal deregulation of the trucking industry in 1980 created a general gain in economic welfare at the expense of the monopoly rents of powerful interests, leading some scholars to ponder the limitations of the economic theory of regulation. However, analyzing only the federal changes excludes evidence from the significant intrastate sector of the trucking industry, regulation of which remains largely unchanged from that prior to 1980. This paper argues that after a decade of clear federal policy success, truckers continue to capture most state regulators, sustaining monopoly rents in what would otherwise be an inherently competitive industry. Using data from the fifty states, we demonstrate the extent to which the economic theory is in fact consistent with trucking industry evidence.
- Alexis, M. The political economy of federal regulation of surface transportation. In: Noll, R., Owen, B. eds. (1983) The Political Economy of Deregulation. American Enterprise Institute, Washington, DC
- Allen, W.B. et al. (1991). The impact of state economic regulation of motor carriage on intrastate and interstate commerce. Unpublished manuscript prepared for U.S. Department of Transportation.
- Allen, W.B., Taylor-Brown, C. (1980) Examination of the unregulated trucking experience in Delaware. Report prepared for U.S. Department of Transportation. National Technical Information Service, Washington, DC
- Annable, J. (1973). The ICC, the IBT, and the cartelization of the American trucking industry.Quarterly Review of Economics and Business (Summer): 33–47.
- Baker, D. (1983) Your letter of the law. Manuscript. Transportation Lawyers Association, San Francisco
- Becker, G. (1983) A theory of competition among pressure groups for political influence. Quarterly Journal of Economics 98: pp. 371-400
- Blair, R., Kasserman, M. and McClave, G. (1986). Motor carrier deregulation: The Florida experiment.Review of Economics and Statistics (February).
- Buchanan, J., Tollison, R., Tullock, G. eds. (1980) Toward a theory of the rent-seeking society. Texas A&M University Press, College Station, TX
- Carter, C. (1958) State regulation of commercial motor carriers in North Carolina. University of North Carolina Press, Chapel Hill
- Childs, W. (1985) Trucking and the public interest: The emergence of federal regulation, 1914–1940. University of Tennessee Press, Knoxville, TN
- Cunningham, W., Rakowski, J. and Southern, N. (1987). Intrastate deregulation in the motor carrier industry: A survey of transportation educators.Transportation Practitioners Journal (Fall): 41–53.
- Freeman, J., Beilock, R. (1983) State regulatory responses to federal motor carrier deregulation. University of Florida Law Review 35: pp. 56-79
- Frendreis, J. and Waterman, R. (1985). PAC contributions and legislative behavior: Senate voting on trucking deregulation.Social Science Quarterly 401–412.
- Gilligan, T., Marshall, W., Weingast, B. (1989) Regulation and the theory of legislative choice: The Interstate Commerce Act of 1887. Journal of Law and Economics 32: pp. 35-61
- Hacker, A. Pressure politics in Pennsylvania: The truckers versus the railroads. In: Westin, A. eds. (1962) The uses of power: Seven cases in American politics. Harcourt, Brace and World, New York
- Hilton, G. (1972) The basic behavior of regulatory commissions. American Economic Review 62: pp. 33-47
- Johnson, J. and Schneider, K. (1991). The 1980 Motor Carrier Act: A ten-year retrospective by traffic executives.Transportation Practitioners Journal (Summer): 356–374.
- Kreuger, A. (1974) The political economy of rent-seeking. American Economic Review 64: pp. 291-303
- MacAvoy, P., Snow, J. eds. (1977) Regulation of entry and pricing in truck transportation. American Enterprise Institute, Washington, DC
- Meyer, J., Peck, M., Stenason, J., Zwick, C. (1959) The economics of competition in the transportation industries. Harvard University Press, Cambridge
- Moore, T.G. (1978) The beneficiaries of trucking regulation. Journal of Law and Economics 21: pp. 327-343
- Peltzman, S. (1976) Toward a more general theory of regulation. Journal of Law and Economics 19: pp. 211-240
- Peltzman, S. (1989). The economic theory of regulation after a decade of deregulation.Brookings Papers: Microeconomics 1989, pp. 1–41.
- Phillips, K.B., Phillips, L. (1984) Research, politics, and the dynamics of policy development: A case study of motor carrier regulatory reform. Policy Sciences 17: pp. 367-384
- Pustay, M. (1984). Intrastate motor carrier regulatory reform in South Dakota.Transportation Practitioners Journal (Fall): 93–107.
- Robyn, D. (1987) Braking the special interests. University of Chicago Press, Chicago
- Rothenberg, L. (1987). The politics and economics of motor carrier regulation and deregulation. Ph.D. dissertation. Stanford University.
- Rose, N. (1985) The incidence of regulatory rents in the motor carrier industry. Rand Journal of Economics 16: pp. 299-318
- Rose, N. (1987) Labor rent sharing and regulation: Evidence from the trucking industry. Journal of Political Economy 95: pp. 1146-1178
- Stigler, G. (1971) The theory of economic regulation. Bell Journal of Economics and Management Science 2: pp. 3-21
- Tullock, G. (1967) Welfare costs of tariffs, monopoly and theft. Western Economic Journal 5: pp. 224-232
- Tye, W. (1987) Encouraging cooperation among competitors: The case of motor carrier deregulation and collective ratemaking. Quorum Books, Westport, CT
- White, E. (1989) Economic regulation of Oregon intrastate trucking: A policy evaluation. Transportation Law Journal 17: pp. 179-233
- Winston, C., Corsi, T., Grimm, C., Evans, C. (1990) The economic effects of surface freight deregulation. Brookings Institution, Washington DC
- The economic theory of regulation and trucking deregulation: Shifting to the state level
Volume 79, Issue 3-4 , pp 247-256
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- Industry Sectors