Technological Change and Investment in Commercial Aircraft: Model Specification

Part of the Transportation Research, Economics and Policy book series (TRES)


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.


Specific Fuel Consumption Commercial Aircraft Aircraft Type Total Variable Cost American Airline 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    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.Google Scholar
  2. 2.
    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.Google Scholar
  3. 3.
    Sung, S. (1990) A Quantitative Analysis of the Dual Use of Technology in the U.S. Airframe Manufacturing and Aircraft Engine Industries: 1961-1985, unpublished Ph.D. Dissertation, Rensselaer Polytechnic Institute, Troy, New York, 12180.Google Scholar
  4. 4.
    Norsworthy and Jang (1992), Chapter 9, pp. 218-235.Google Scholar
  5. 5.
    Norsworthy and Jang (1992), Chapter 6, pp. 133-170.Google Scholar
  6. 6.
    Norsworthy and Jang (1992), Chapter 7, pp. 171-194.Google Scholar
  7. 7.
    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.Google Scholar
  8. 8.
  9. 9.
    Phillips, A. (1971) Technology and Market StructureA Study of the Aircraft Industry, D.C. Heath and Company, Mass, pp. 37–52.Google Scholar
  10. 10.
  11. 11.
  12. 12.
    Ethell, J. (1983) Fuel Economy in Aviation, NASA, Washington, D.C., pp. 99-101.Google Scholar
  13. 13.
    Morrison, S. (May 1984) “An Economic Analysis of Aircraft Design,” Journal of Transport Economics and Policy, pp. 123–143.Google Scholar
  14. 14.
    Ethell, J. (1983), pp. 99-101.Google Scholar
  15. 15.
  16. 16.
    Phillips (1971), pp. 37-52.Google Scholar
  17. 17.
  18. 18.
  19. 19.
  20. 20.
    Ethel (1983), pp. 99-101 and Phillips (1971), pp. 37-52.Google Scholar
  21. 21.
    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.Google Scholar
  22. 22.
    Jane’s Information Group, Inc, Janes All The Worlds Aircraft, Various Years (1970-1992), London.Google Scholar
  23. 23.
    The Boeing Commercial Airplane Group, Boeing World Jet Airplane Inventory, Various Years 1970-1992, Seattle, WA.Google Scholar
  24. 24.
    Air Transport Association of America, Airlines Cost Index (1970-1992), Washington, D.C.Google Scholar
  25. 25.
    Airline Price Guide Inc., The Airliner Price Guide (1990), Oklahoma City, OK.Google Scholar
  26. 26.
    Air Transport Association of America), The. Annual Report of the U.S. Scheduled Airline Industry, (Various Years 1970-1992), Washington, D.C.Google Scholar
  27. 27.
    Bureau of Labor Statistics, The Producer Price Indexes. Washington, D.C.Google Scholar
  28. 28.
    McCann-Erickson Advertising Cost Index (1970-1992), provided by Robert Coen, Economist, McCann Erickson Agency, 750 Third Avenue, NY, NY 10017.Google Scholar
  29. 29.
    Jorgenson, D. and Yun, K. (1991) Tax Reform and the Cost of Capital, Oxford University Press, NY.CrossRefGoogle Scholar
  30. 30.
    Jorgenson, D., Gollop, F. and Fraumeni B. (1987) Productivity and U.S. Economic Growth, Cambridge, MA, Harvard University Press.Google Scholar
  31. 31.
    Norsworthy and Jang (1992).Google Scholar
  32. 32.
    The Airliner Price Guide (1990).Google Scholar
  33. 33.
    Boeing World Jet Airplane Inventory Various Years 1970-1992.Google Scholar
  34. 34.
    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.Google Scholar
  35. 35.
    Janes All The Worlds Aircraft Various Years 1970-1992.Google Scholar

Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  1. 1.Center for Science and Technology PolicyRensselaer Polytechnic InstituteTroyUSA
  2. 2.Lally School of Management and TechnologyRensselaer Polytechnic InstituteTroyUSA

Personalised recommendations