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The income elasticity of air travel: a meta-analysis

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  • Gallet, Craig A.
  • Doucouliagos, Hristos

Abstract

There is much disparity in estimates of the income elasticity of air travel across the literature. We examine this disparity by applying meta-regression techniques. Controlling for several issues, including publication selection bias, while our preferred baseline income elasticity estimate of 1.186 is consistent with air travel being a luxury and a slightly immature market, there are several features of the literature which sway the income elasticity away from this baseline. For instance, the income elasticity increases to 1.546 on international routes, yet decreases to 0.633 when air fare is included in a dynamic specification of demand, ceteris paribus. Other characteristics of the literature, such as those involving various data and estimation choices, have less influence on the reported income elasticity.
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Suggested Citation

  • Gallet, Craig A. & Doucouliagos, Hristos, 2014. "The income elasticity of air travel: a meta-analysis," Working Papers eco_2014_6, Deakin University, Department of Economics.
  • Handle: RePEc:dkn:econwp:eco_2014_6
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    File URL: http://dx.doi.org/10.1016/j.annals.2014.09.006
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Escañuela Romana, Ignacio, 2018. "La elasticidad precio de la demanda de transporte aéreo de pasajeros en los Estados Unidos
      [The price elasticity of demand for air travel in the United States]
      ," MPRA Paper 83572, University Library of Munich, Germany.
    2. repec:bla:jecsur:v:32:y:2018:i:1:p:194-225 is not listed on IDEAS
    3. repec:wly:econjl:v::y:2017:i:605:p:f236-f265 is not listed on IDEAS
    4. repec:eee:enepol:v:115:y:2018:i:c:p:523-544 is not listed on IDEAS
    5. Gallet, Craig A. & Doucouliagos, Hristos, 2017. "The impact of healthcare spending on health outcomes: A meta-regression analysis," Social Science & Medicine, Elsevier, vol. 179(C), pages 9-17.
    6. repec:eee:jotrge:v:61:y:2017:i:c:p:1-8 is not listed on IDEAS
    7. Miller, Benjamin I. & Dewey, James F. & Denslow, David & Miller, Edward B., 2016. "A welfare analysis of subsidies for airports," Journal of Air Transport Management, Elsevier, vol. 50(C), pages 83-90.
    8. repec:bla:jecsur:v:33:y:2019:i:3:p:999-1027 is not listed on IDEAS
    9. Francesco Aiello & Graziella Bonanno, 2018. "On The Sources Of Heterogeneity In Banking Efficiency Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 194-225, February.
    10. Francesco Aiello & Graziella Bonanno, 2019. "Explaining Differences In Efficiency: A Meta‐Study On Local Government Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 33(3), pages 999-1027, July.
    11. Francesco Aiello & Graziella Bonanno & Luigi Capristo, 2017. "Explaining Differences In Efficiency: The Case Of Local Government Literature," Working Papers 201704, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    12. repec:wly:econjl:v:127:y:2017:i:605:p:f236-f265 is not listed on IDEAS

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    Keywords

    income elasticity; air travel; meta-regression analysis;

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