A Further Analysis of Provincial Trucking Regulation
Volume: Volume 4, No. 2
Issue: Autumn 1973
Pages: pp. 655-664
Authors: John Palmer
Title: A Further Analysis of Provincial Trucking Regulation
Abstract: Forcing what is essentially a hyperbolic relationship into a linear regression model can create a "hyperbolic bag." This bag takes on importance if it is systematically related to other variables in the regression model. For the case at hand, it appeared that using a linear model might overstate the effects of regulation on trucking rates because the provinces which regulate rates have either relatively short or relatively long average distances, while those which do not regulate rates have intermediate distances falling at the bottom of such a bag. The regression model was respecified to correct for this problem, and while the respecification appears unimportant, other questions are raised.
JEL Classification
Economics of Transportation (6150)
Regulation of Public Utilities (6130)