Regulatory Developments in the U.S. : History and Philosophy
The first nationwide regulation of transportation in the United States (U.S.) was intervention in railways. In the 1830 to 1880 period, railways had been over-built in many areas of the country especially the Northeast mainly because of financial s...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2000/03/18844237/regulatory-developments-history-philosophy http://hdl.handle.net/10986/17680 |
| Summary: | The first nationwide regulation of
transportation in the United States (U.S.) was intervention
in railways. In the 1830 to 1880 period, railways had been
over-built in many areas of the country especially the
Northeast mainly because of financial speculation in the
creation of railway companies. The perceived "high
fixed cost, low variable cost" structure of railways
tended to generate severe rate cutting and tariff
instability whenever railways directly competed for traffic.
Another major thrust was "locational" (regional)
interests - farmers who wanted rates averaged and stabilized
so that more distant markets will see the same transport
costs as the "more fortunate", closer farms, and
so that ports can be "equalized". This report
gives the growth of transport regulation in the U.S.;
results of regulation; why was regulatory change necessary
at the beginning of the 1980's?; and the deregulatory
experience in the U.S. |
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