Abstract
Earlier studies of technological change in the semiconductor, computer and telecommunication industries1 and in the aircraft engine and aircraft industries2 provide evidence that the physical characteristics of technology can add substantially to the realization of econometric models of production. This chapter outlines the translog variable cost function will be applied to the airlines and the results analyzed in Chapter 7.
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Endnotes
Norsworthy, J.R. and Jang, S.L. (1992) Empirical Measurement and Analysis of Productivity and Technological Change: Applications in High Technology and Service Industries, North-Holland Press.
Sung, S. and Norsworthy, J.R. (1989) “A Quantitative Analysis of the Dual Use of Technology in the U.S. Airframe Manufacturing and Aircraft Engine Industries: 1961-1985,” presented at the Eastern Economic Association Meeting, Baltimore.
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Norsworthy and Jang (1992), Chapter 9, pp. 218-235.
Norsworthy and Jang (1992), Chapter 6, pp. 133-170.
Norsworthy and Jang (1992), Chapter 7, pp. 171-194.
See Good, D., Nadiri, M.I. and Sickles, R. (1991) “The Structure of Production, Technical Change and Efficiency in a Muliproduct Industry: An application to U.S. Airlines,” Working Paper, National Bureau of Economic Research, Cambridge, Mass. Here the authors use four attributes of capital stock (vintage age, size, diversity in size and percentage of the fleet powered by jet) in an alternative specification of technology.
ibid.
Phillips, A. (1971) Technology and Market Structure — A Study of the Aircraft Industry, D.C. Heath and Company, Mass, pp. 37–52.
ibid.
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Ethell, J. (1983), pp. 99-101.
ibid.
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ibid.
Ethel (1983), pp. 99-101 and Phillips (1971), pp. 37-52.
U.S. Department of Transportation’s, Research and Special Programs Admininstration, Air Carriers Financial and Traffic Statistics Monthly. Form 41 Data, Washington, D.C.and Database Products of Dallas, Texas sells Form 41 data on a CD-ROM file format.
Jane’s Information Group, Inc, Jane’s All The World’s Aircraft, Various Years (1970-1992), London.
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Air Transport Association of America), The. Annual Report of the U.S. Scheduled Airline Industry, (Various Years 1970-1992), Washington, D.C.
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McCann-Erickson Advertising Cost Index (1970-1992), provided by Robert Coen, Economist, McCann Erickson Agency, 750 Third Avenue, NY, NY 10017.
Jorgenson, D. and Yun, K. (1991) Tax Reform and the Cost of Capital, Oxford University Press, NY.
Jorgenson, D., Gollop, F. and Fraumeni B. (1987) Productivity and U.S. Economic Growth, Cambridge, MA, Harvard University Press.
Norsworthy and Jang (1992).
The Airliner Price Guide (1990).
Boeing World Jet Airplane Inventory Various Years 1970-1992.
See Hulten, C. and Wykoff, F (1981) “The Measurement of Economic Depreciation in Depreciation, Inflation and Taxation,” in Hulten, C., (ed.), Depreciation, Inflation and the Taxation of Income Capital, The Urban Institute, pp. 81–132.
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Pitt, I.L., Norsworthy, J.R. (1999). Technological Change and Investment in Commercial Aircraft: Model Specification. In: Economics of the U.S. Commercial Airline Industry: Productivity, Technology and Deregulation. Transportation Research, Economics and Policy. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5031-0_6
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