Discussion Papers, Department of Finance and Management Science, Norwegian School of Economics (NHH)
No 2008/26:
Modeling Freight Markets for Coal
Jonas Andersson ()
, Kurt Jörnsten ()
, Siri Pettersen Strandenes ()
and Jan Ubøe ()
Abstract: In this paper we study bulk shipping of coal between the
central regions in the world. We compare the performance of cost-minimizing
models with a gravity model approach. The main finding in the paper is that
cost minimizing models provide relative poor fits to data. A simple one
parameter gravity model, however, provides very satisfactory fits to
observed behaviour.
Keywords: Bulk freight; cost efficiency; gravity modeling; (follow links to similar papers)
JEL-Codes: F10; F17; R41; (follow links to similar papers)
13 pages, February 10, 2009
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