THE WELFARE COSTS OF NON-OPTIMAL AIRPORT UTILIZATION: A CASE STUDY OF THE WASHINGTON-BALTIMORE AIRPORTS

THIS REPORT REVIEWS THE WASHINGTON-BALTIMORE AIRPORT - IT'S PROBLEMS, THEORETICAL ISSUES IN THE PRICING OF TRANSPORTATION FACILITIES THE MULTIPLE AIRPORT MODEL, ESTIMATES OF PRODUCTION FUNCTIONS, COST FUNCTIONS, OPTIMAL TOLLS, TOLL REVENUES, AND WELFARE COSTS. THE THEORETICAL ISSUES RELATED TO PRICING OF THE TRANSPORTATION FACILITIES INCLUDE CONGESTION AND PEAK LOAD PRICING WITH CONSTANT AND VARIABLE DEMAND FOR MULTIPLE FACILITIES. THE AUTHOR DEVELOPED A MULTIPLE AIRPORT MODEL, BEGINNING WITH A SIMPLE MODEL FOR ONE AIRPORT IN ORDER TO DISCOVER WAYS TO MODIFY THE GENERAL MODELS TO ALLOW FOR CHARACTERISTICS OF INDIVIDUAL AIRPORTS. THE PURPOSE OF ESTIMATING PRODUCTION FUNCTIONS IS TO BEGIN EMPIRICAL APPLICATION OF THE AIRPORT MODEL TO THE WASHINGTON-BALTIMORE AIRPORTS. THE REPORT CONTAINS A REVIEW OF THE STATE OF EMPIRICAL KNOWLEDGE ABOUT THE DEMAND FOR AIR TRANSPORTATION. THIS DEMAND CURRENTLY IS SO LIMITED THAT CONSIDERABLE CONTROVERSY EXISTS ABOUT PRICE ELASTICITY. THE STUDY ENDS WITH A COMPARISON OF THE TOTAL COST OF PASSENGER TRIPS THROUGH ALL THREE AIRPORTS BEFORE AND AFTER THE IMPOSITION OF OPTIMAL CONGESTION TOLLS. THE DIFFERENCE SERVES AS A MEASURE OF THE WELFARE LOSS WHICH RESULTS FROM THE PRESENT NON-OPTIMAL UTILIZATION OF THE WASHINGTON-BALTIMORE AIRPORTS. /UMTA/

  • Corporate Authors:

    University of Minnesota, Minneapolis

    Department of Aerospace Engineering and Mechanics, 200 Union Street, SE
    Minneapolis, MN  USA  55455
  • Authors:
    • Likens, J D
  • Publication Date: 1970-6

Subject/Index Terms

Filing Info

  • Accession Number: 00201098
  • Record Type: Publication
  • Source Agency: Urban Mass Transportation Administration
  • Report/Paper Numbers: URT-14 (69)
  • Files: TRIS, USDOT
  • Created Date: Jan 3 1973 12:00AM