The effect of FAA expenditures on air travel delays
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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"The Economics of Airport Congestion Pricing,"
Tinbergen Institute Discussion Papers
03-083/3, Tinbergen Institute.
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