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The Political Economy of the Essential Air Service Program

Author

Listed:
  • Joshua C. Hall

    (West Virginia University, Department of Economics)

  • Amanda Ross

    (West Virginia University, Department of Economics)

  • Christopher Yencha

    (West Virginia University, Department of Economics)

Abstract

We find that congressional influences affect the amount of airport subsidies that a congressional district receives from the Essential Air Service (EAS) program. The EAS program was passed with the goal of helping to continue commercial air service to rural communities following the deregulation of the airline industry. Using subsidy data from 1998-2014, we find strong evidence that subsidies are higher in districts having congressional representation on the House Transportation Committee. Representation on the House Appropriations Committee is also associated with higher subsidies. Our empirical results, combined with news reports, are consistent with the EAS serving private as well as public interests.

Suggested Citation

  • Joshua C. Hall & Amanda Ross & Christopher Yencha, 2015. "The Political Economy of the Essential Air Service Program," Working Papers 15-18, Department of Economics, West Virginia University.
  • Handle: RePEc:wvu:wpaper:15-18
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    References listed on IDEAS

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    Cited by:

    1. Jessi Troyan & Joshua Hall, 2019. "The Political Economy of Abandoned Mine Land Fund Disbursements," Economies, MDPI, Open Access Journal, vol. 7(1), pages 1-17, January.
    2. John Considine & Justin Doran, 2016. "Evaluation of an informal rule for the allocation of sports capital funding," Public Choice, Springer, vol. 168(1), pages 43-54, July.
    3. Joshua Hall & Shree Baba Pokharel, 2017. "Does the Median Voter or Special Interests Determine State Highway Expenditures? Recent Evidence," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(1), pages 59-69, March.

    More about this item

    Keywords

    congressional dominance; deregulation; airports;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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