Regional and Sectoral Effects of Competition for Wheat Transportation

Bruce H. Wright

Journal of Agricultural and Applied Economics, 1969, vol. 1, issue 1, 99-108

Abstract: Increased competition from barges and trucks for wheat traffic has caused rail charges for transporting wheat to decline relative to those for flour. Some flour milling centers now find themselves in an uneconomic location. The development and consequences of truck-barge-rail competition for wheat transportation is discussed in terms of the development of a differential between rates for wheat and flour. A spatial model that isolates the effects of these changes in rates for analysis is presented and the implications of the results are discussed as they pertain to various sectors and regions of the wheat-flour economy.

Date: 1969
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