Subsidies in air transport markets: The economic consequences of choosing the wrong mechanism
In this paper, the authors analyze the efficiency of ad valorem and specific subsidies for resident passengers in air transport markets. A fixed discount per trip and route is always superior to the ad valorem alternative. They prove that the effectiveness of the subsidy for resident passengers strongly depends on the particular characteristics of the route, such as the level of competition, the proportion of residents, or the shape of residents’ and non-residents’ demand functions. Thus, any evaluation of the effects of such subsidies has to be performed route by route, taking into account the particular characteristics of the route, market share of residents and non-residents, degree of competition, and the period of time when the operations take place.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
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Supplemental Notes:
- © 2022 Ginés de Rus and M. Pilar Socorro. Published by Elsevier Ltd. Abstract reprinted with permission of Elsevier.
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Authors:
- de Rus, Ginés
- Socorro, M. Pilar
- Publication Date: 2022-4
Language
- English
Media Info
- Media Type: Web
- Features: Appendices; Figures; References; Tables;
- Pagination: 102659
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Serial:
- Transportation Research Part E: Logistics and Transportation Review
- Volume: 160
- Issue Number: 0
- Publisher: Elsevier
- ISSN: 1366-5545
- Serial URL: http://www.sciencedirect.com/science/journal/13665545
Subject/Index Terms
- TRT Terms: Air transportation; Airlines; Markets; Residents; Subsidies
- Subject Areas: Aviation; Economics; Finance;
Filing Info
- Accession Number: 01847138
- Record Type: Publication
- Files: TRIS
- Created Date: May 25 2022 9:40AM