Professor Abouchar examines the freight schedules introduced on the brazilian railways in 1968. He concludes that they will be more inflationary than the old rates, leading to still larger deficits and to increasing demand in directions that will be harmful to national efficiency.
The approach utilises a simultaneous equations system to derive a discrete/continuous choice model for the choices of mode and shipment size in the intercity freight market. The method is applied to the demand for intercity freight transport using data from the US Census of transportation.
Since rail rates in the US were partially deregulated, they have been affected more strongly by competition and less by costs. The strength of competition from trucks depends on fuel prices and improvements in technology, and, on the demand side, on the availability of rail cars.
