Directional Imbalance in Transport Prices: An Application to Inland Shipping in North-West Europe

Olaf Jonkeren, Jos van Ommeren (jos.van.ommeren@vu.nl) and Piet Rietveld
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Olaf Jonkeren: European Commission, JRC

No 11-134/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: According to theory, the effect of carriers' transport costs on freight prices depends on the directional imbalance in transport flows. Using data on inland waterway transport, we demonstrate that when the ratio of export to import trips doubles, the marginal effect of carriers' transport costs on freight prices of goods exported increases by about 30 percent. Our identifying methodology is based on an innovative approach using natural variation in river water levels that affect the costs of transport.

Keywords: directional imbalance; transport prices (search for similar items in EconPapers)
JEL-codes: R32 (search for similar items in EconPapers)
Date: 2011-09-26
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20110134

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