In recent years there has been considerable analysis of the structure of costs and technology of the regulated trucking industry. These studies have generally focused upon the question of economies of scale and the extent to which the industry could be expected to operate competitively in a deregulated environment. Thus, they have primarily concentrated on the questions of industry structure and conduct and performance, with particular attention to rates and service levels.

An equally important aspect of industry performance, however, is productivity. Although this has been largely ignored in analyses of the trucking industry, the implications of regulation for dynamic efficiency and productivity may be just as important as its implications for static efficiency and pricing policies. Indeed, preliminary work in this area by Friedlaender and Wang Chiang (1983) indicates that substantial productivity gains arise through operating characteristics, such as length of haul, that can be affected by regulatory policies dealing with route and operating authorities.

Although previous work has been suggestive, data limitations have prevented a definitive analysis of the sources and nature of technological change in the trucking industry. Without this information, however, it is difficult to determine whether technical change and productivity growth primarily arise from input effects, operating characteristic effects, or output effects, and hence whether regulation can be said to have had a major impact upon productivity growth.