Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2011-09-26
Number: 11-134/3
Author-Name: Olaf Jonkeren
Author-Workplace-Name: European Commission, JRC
Author-Name: Jos N. van Ommeren
Author-Workplace-Name: VU University Amsterdam
Author-Name: Piet Rietveld
Author-Workplace-Name: VU University Amsterdam
Title: Directional Imbalance in Transport Prices: An Application to Inland Shipping in North-West Europe
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.
Classification-JEL: R32
Keywords: directional imbalance, transport prices
File-Url: https://papers.tinbergen.nl/11134.pdf
File-Format: application/pdf
File-Size: 28865 bytes
Handle: RePEc:tin:wpaper:20110134