01020288

Component

The US Army Corps of Engineers (USACE) evaluates improvements to locks and dams on the waterway using various planning models. This study compares the welfare consequences of lock improvements across USACE models and versions of a full spatial model. A"full" spatial equilibrium model is developed wherein geographically dispersed shippers choose where and how to ship and how much to produce. Shippers face different modal rates and select according to profit-maximization into different modes and modal combinations. This choice gives rise to geographically defined market areas by mode. The differences between USACE models and full spatial models depends critically on how much shippers are willing to switch pools, increase production (at the extensive margin and at the intensive margin), and how railroad rates adjust in response to lower barge rates from lock improvements. The study points to important areas of behavior that need empirical research to evaluate their importance. Specifically, USACE is evaluating changes in existing models to better evaluate lock improvements. This research points to several areas that should be considered for empirical research to gauge their empirical importance in measuring welfare.

01020180

06-1876

English

15p

2006

Transportation Research Board 85th Annual Meeting

CD-ROM

Figures (6) ; References (9)

Barges; Dams; Geography; Improvements; Infrastructure; Locks (Waterways); Markets; Maximization; Physical distribution; Planning; Production; Profits; Railroads; Rates; Shipping; Transportation modes; Waterways

U.S. Army Corps of Engineers

Spatial economic models; Welfare

Administration and Management; Freight Transportation; Geotechnology; Marine Transportation; Planning and Forecasting; Railroads

Transportation Research Board Annual Meeting 2006 Paper #06-1876

TRIS, TRB

Mar 3 2006 10:49AM