Estimating the Economic Effects of Airline Deregulation

Cetin T., Eryigit K. Y.

JOURNAL OF TRANSPORT ECONOMICS AND POLICY, cilt.52, ss.404-426, 2018 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 52
  • Basım Tarihi: 2018
  • Dergi Adı: JOURNAL OF TRANSPORT ECONOMICS AND POLICY
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.404-426
  • Bursa Uludağ Üniversitesi Adresli: Evet

Özet

This paper introduces a simple and relatively new approach to analyze the economic effects of airline deregulation. Using this approach, we empirically investigate the (de) regulatory reform initiated in the Turkish airline industry during the 2000s. As an estimation methodology, we employ cointegration test in the presence of structural breaks to account for the effect of (de) regulatory changes. Cointegration test confirms the existence of a long-run relationship among deregulation, prices, and the number of passengers carried by airlines. The analysis of structural breaks suggests that deregulation impacts on prices and the number of passengers through actual competition and the increased accessibility of air travel, respectively.