Examines cost efficiency in the US motor carrier industry, revealing significant impacts of unionisation.
US motor carriers were not operating on their production frontiers either before or after the Motor Carrier Act of 1980. This suggests that it is inappropriate to estimate cost functions that assume cost minimisation for this industry. Unionisation was found to be the most important determinant of inefficiency in both periods, with its negative impact being stronger in the deregulated industry.
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McMullen et al. (1999) studied this question.
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