ABSTRACT
This chapter investigates the evolution of the regulatory environment in the trucking industry since the early 1980s and seeks to explain the economic consequences of continued economic deregulation and increased safety regulation on the economic performance of the industry. It utilizes microeconomic theory to develop hypotheses on the expected industry performance effects of economic deregulation and safety regulation and provides some empirical measures of industry performance since deregulation. From the beginning of the 20th century to 1935 the trucking industry was virtually unregulated. Licensure provides assurance that drivers have the minimum level of the knowledge and skills required for safe operation of trucks. The industry source for return on assets in trucking is reported for each year from 1981. The trucking industry has sustained its initial post deregulation productivity growth rate despite the introduction of more stringent safety regulation in the early and mid 1980s.
