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An Evaluation on the De-regulation of Mexico’s Airline Market

Author

Listed:
  • Víctor Valdés

    () (Profesor-investigador, Facultad de Economía y Negocios, Universidad Anáhuac-México Norte. Huixquilucan, E.M. Mexico.)

  • José Carlos Ramírez

    () (Profesor-investigador, CADEN, Universidad Anáhuac, y profesor afiliado del CIDE (División de Economía), México, D.F. Mexico.)

Abstract

This paper is aimed at assessing the impact of deregulation initiatives on the recent performance of Mexico’s airline industry. By doing so, three econometric models are estimated with the view of differentiating the weights of deregulation variables from the ones of non-deregulation variables. The main statistical findings support the idea that deregulation in Mexico’s airlines: 1) has had only a marginal positive effect on the number of passengers; 2) has been no influential in establishing a definite competitive price structure in the market, and 3) has rendered insufficient benefits for improving competition conditions in the airline market.

Suggested Citation

  • Víctor Valdés & José Carlos Ramírez, 2011. "An Evaluation on the De-regulation of Mexico’s Airline Market," Economía Mexicana NUEVA ÉPOCA, , vol. 0(1), pages 5-35, January-J.
  • Handle: RePEc:emc:ecomex:v:20:y:2011:i:1:p:5-35
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    File URL: http://www.economiamexicana.cide.edu/num_anteriores/XX-1/01.EM.Aerolineas(5-35).pdf
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    Keywords

    methodology; deregulation; Mexican airline industry.;

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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