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The Politics of Industrial Change: Railway Policy in North America
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The Politics of Industrial Change: Railway Policy in North America

by R. Kent Weaver. 291 pgs.

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publication details

Contributors:

   R. Kent Weaver

Publisher:

   The Brookings Institution

Place of Publication:

  Washington, DC  

Publication Year:

  1985
Subjects:   Industrial Policy--United States, Industrial Policy--Canada, Railroads And State--United States--Case Studies, Railroads And State--Canada--Case Studies
Table of contents
Contents
PROMOTING INDUSTRIAL CHANGE
1. Industrial Adjustment 1
Studying Industrial Policy 4
Constraints on Accelerating Industrial Adjustment 15
Political Structures in Policy Choice 19
Comparative Advantage in Industrial Policy Choice 24
2. Adjustment Policy in the North American Rail Industry 26
The Challenge of Industrial Change 29
The Growth of Protectionist Policy 33
The Shift toward Deregulation 50
The Failure of Accelerationist Policy 57
THE CHOICE OF POLICY INSTRUMENTS
3. The Politics of Policy Instrument Choice 62
Options for Instrument Choice 63
Patterns of Instrument Choice in North America 70
Explaining Instrument Choice 74
Instrument Choice and Industrial Adjustment 85
4. Rail Nationalization in the United States: The Politics of Impasse 87
Preserving Passenger Service: Amtrak 88
Rescuing Regional Services: Conrail 97
Toward a New Rail Policy: The Rock Island and the Milwaukee Road 113
Conclusions 120
5. Rail Nationalization in Canada: The Politics of Executive Dominance 128
Canadian National Railways: Industrial Crises and Political Compromise 129
VIA Rail Canada: Policy Conflict and Executive Mobilization 135
Conclusions 142
PUBLIC ENTERPRISE AS POLICY INSTRUMENT
6. Determinants of Public Enterprise Behavior 148
Strategic Options for Public Enterprise 149
Choosing Enterprise Strategy 157
Political Systems and Constraint Patterns 165
Enterprise Strategy and Industrial Adjustment 167
7. Public Enterprise in the Rail Freight Industry 171
Canadian National Railways 171
Consolidated Rail Corporation 209
Public Enterprise and Industrial Adjustment 224
8. Public Enterprise in the Rail Passenger Industry 227
Amtrak 229
VIA Rail Canada 255
Public Enterprise and Industrial Adjustment 266
LESSONS
9. Comparative Advantage in Policy Choice 268
Promoting Industrial Change 269
Choosing Policy Instruments 275
Public Enterprise as a Policy Instrument 278
Index 285
Tables
1-1. Industrial Adjustment Policies and Industry Life Cycles 8
1-2. Costs and Benefits of Industrial Adjustment Policies 16
1-3. Industrial Policy Options and the Distribution of Costs and Benefits 17
2-1. Protectionist, Market-oriented, and Accelerationist Policies toward Railways 34
2-2. Canadian Transport Commission Passenger-Train-Abandonment Decisions, 1968-75 43
3-1. Instrument Options for Government 66
3-2. Public Enterprise Shares of Selected Western Economies 71
3-3. Selected Public Enterprises in Canada and the United States 72
3-4. Industrial Problems and Instrument Responses 76
4-1. Decline of U.S. Rail Passenger Service, 1949-69 89
6-1. Public Enterprise Strategies and Goals 151
6-2. Industrial Adjustment Consequences of Enterprise Strategy and Government Policy Choice 168
7-1. Income (Loss) Statement by Division, Canadian National Railways, Selected Years, 1973-84 186
7-2. Division Profitability and Investment Patterns, Canadian National Railways 193
7-3. The Effects of Political and Economic Variables on Changes in the Relative Labor Productivity of Canadian National and Canadian Pacific 205
7-4. Railway Operating Expenses as a Percentage of Operating Revenue, 1979-80 211
7-5. Railroad Labor Costs as a Percentage of Operating Revenues, 1978 220
7-6. Conrail Employment, 1976-84 223
8-1. Amtrak Revenue Shortfalls, 1971-84 231
8-2. Amtrak Operating Statistics, 1972-84 241
Figures
2-1. Passenger Service Train Miles, Selected U.S. and Canadian Railways, 1923-77 42
2-2. Rail Employment, Selected U.S. and Canadian Railways, 1926-80 49
2-3. Federal Rail Expenditures in the United States, Fiscal Years 1969-85 56
2-4. Federal Rail Expenditures in Canada, 1970-85 58
4-1. U.S. Revenue Freight Ton-Miles, by District, 1929-83 98
7-1. Sources of Revenue for the Operating Expenses of Canadian National Railways, 1969-84 176
7-2. Sources of Funding for the Capital Expenditures of Canadian National Railways, 1969-84 178
7-3. Labor Productivity of Canadian National Railways Relative to That of Canadian Pacific, 1957-80 203
7-4. Productivity of Canadian National Railways Relative to That of Canadian Pacific in Four Areas, 1957-83 204
8-1. Amtrak Route Structure 242
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