Information, Decisions, and Productivity: On-Board Computers and Capacity Utilization in Trucking
- (pp. 1328-1353)
Abstract
Productivity reflects not only how efficiently inputs are transformed into outputs, but also how well information is applied to resource allocation decisions. This paper examines how information technology has affected capacity utilization in the trucking industry. Estimates for 1997 indicate that advanced on-board computers (OBCs) have increased capacity utilization among adopting trucks by 13 percent. These increases are higher than for 1992, suggesting lags in the returns to adoption, and are highly skewed across hauls. The 1997 estimates imply that OBCs have enabled 3-percent higher capacity utilization in the industry, which translates to billions of dollars of annual benefits. (JEL D24, L92, O33, O47)Citation
Hubbard, Thomas, N. 2003. "Information, Decisions, and Productivity: On-Board Computers and Capacity Utilization in Trucking." American Economic Review, 93 (4): 1328-1353. DOI: 10.1257/000282803769206322JEL Classification
- D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L92 Railroads and Other Surface Transportation
- O33 Technological Change: Choices and Consequences; Diffusion Processes