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The effect of FAA expenditures on air travel delays

  • Morrison, Steven A.
  • Winston, Clifford

The Federal Aviation Administration (FAA) seeks to prevent the nation's aviation system from becoming congested. To reduce delays, the FAA makes investments in air traffic control. We assess the efficacy of these investments by developing an empirical model of delays that is motivated by air traffic control operations. We find that FAA spending has reduced the costs of delays to travelers and operators but that the FAA could generate greater benefits if spending were increased and efficiently allocated toward airports that experience the greatest delays.

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File URL: http://www.sciencedirect.com/science/article/B6WMG-4PD4X9D-1/2/88ee193499e9a2dc11e067755cb34a90
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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 63 (2008)
Issue (Month): 2 (March)
Pages: 669-678

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Handle: RePEc:eee:juecon:v:63:y:2008:i:2:p:669-678
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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  1. Daniel, Joseph I, 1995. "Congestion Pricing and Capacity of Large Hub Airports: A Bottleneck Model with Stochastic Queues," Econometrica, Econometric Society, vol. 63(2), pages 327-70, March.
  2. Jan K. Brueckner, 2002. "Airport Congestion When Carriers Have Market Power," American Economic Review, American Economic Association, vol. 92(5), pages 1357-1375, December.
  3. Christopher Mayer & Todd Sinai, 2003. "Network Effects, Congestion Externalities, and Air Traffic Delays: Or Why Not All Delays Are Evil," American Economic Review, American Economic Association, vol. 93(4), pages 1194-1215, September.
  4. Zhang, Anming & Zhang, Yimin, 2006. "Airport capacity and congestion when carriers have market power," Journal of Urban Economics, Elsevier, vol. 60(2), pages 229-247, September.
  5. Daniel, Joseph I. & Pahwa, Munish, 2000. "Comparison of Three Empirical Models of Airport Congestion Pricing," Journal of Urban Economics, Elsevier, vol. 47(1), pages 1-38, January.
  6. Pels, Eric & Verhoef, Erik T., 2004. "The economics of airport congestion pricing," Journal of Urban Economics, Elsevier, vol. 55(2), pages 257-277, March.
  7. Zhang, Anming & Zhang, Yimin, 2003. "Airport charges and capacity expansion: effects of concessions and privatization," Journal of Urban Economics, Elsevier, vol. 53(1), pages 54-75, January.
  8. Rose, Nancy L, 1990. "Profitability and Product Quality: Economic Determinants of Airline Safety Performance," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 944-64, October.
  9. Daniel, Joseph I., 2001. "Distributional Consequences of Airport Congestion Pricing," Journal of Urban Economics, Elsevier, vol. 50(2), pages 230-258, September.
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