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Conclusions

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

Abstract

We have presented and applied what we regard as the empirical framework for analyzing productivity, technological change and investment in commercial airline industry. The approach consists, first, of describing and understanding the major characteristics that distinguish the industry: its key institutions, technologies and practices, and only then engaging in a program of econometric estimation and inference. We believe that this approach represents a vast improvement over either shotgun econometrics or pure description that rhapsodizes about the peculiarities of an industry’s culture. The institution-based econometrics also is more fruitful than the use of simple linear regression models to analyze productivity, or the use of questionnaire-based information (typically ignoring such performance measures as profits, productivity, and costs) to analyzing business and economic phenomena. It is only from an institutionally conformal econometric specification, that we can analyze and describe quantitatively the effects of regulatory changes and provide strategic planners in the aircraft engine and aircraft industries with the technology-related information required for decision making. The information developed in this book is the empirical foundation for such decision making.

Keywords

International Competitiveness Aircraft Industry Airline Industry Simple Linear Regression Model Commercial Aircraft 
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.

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Endnotes

  1. 1.
    Ethell, J. (1983) Fuel Economy in Aviation, NASA, Washington, D.C, p. 110.Google Scholar
  2. 2.
    O’Connor, W. (1989) An Introduction to Airline Economics, 4th edition, Prager Publishing, New York, pp. 174–175 and United States General Accounting Office,(July 1991) Meeting the Aviation Challenges of the 1990’s: Experts Define Key Problems and Identify Emerging Issues, Washinton, DC, GAO/RCED-91-152.Google Scholar
  3. 3.
    See the discussion in U.S. Department of Transportation (April 1986), Federal Aviation Administration, Report to Congress: Alternatives Available to Accelerate Commercial Aircraft Fleet Modernization, Washington, D.C, 86-424-P.Google Scholar
  4. 4.
    Pickrell, D. (1991) “The Regulation and Deregulation of US Airlines,” in Airline Deregulation-International Experiences, edited by K. Button, New York University Press, New York, p. 10.Google Scholar
  5. 5.
    U.S. Departent of Commerce (1986) A Competitive Assessment of the U.S. Civil Aircraft Industry Westview Press Boulder Colorado p. 149Google 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

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