Dynamic responses of freight operators to government policies: a latent curve modelling approach

Abstract

Using a unique dataset collected from Australian (urban) freight operators using an adaptive-dynamic simulation method, firms’ dynamic responses are modelled using latent curve models to investigate firms’ adaptation strategies in response to new government policies. Latent curve models are used to identify the magnitude and timing of the responses as well as what factors influence the changes. The results show that firms adapt gradually to the policies with some decisions changing quicker than others. Furthermore, the drivers of responses changes during the adaptation process and that not all incremental decisions are made solely on the basis of cost.