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Sources of Productivity Increases in the U.S. Passenger Airline Industry

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  • Neil B. Murphy

    (Leasco Systems & Research Corporation, Bethesda, Maryland)

Abstract

The purpose of this paper is to estimate cost junctions for the U.S. passenger airline industry in order to determine the sources of recent observed productivity increases. A cost function is derived from the Cobb-Douglas production function, and the parameters of that reduced form equation are estimated. Special attention is given to effect of technology on costs. In general, it was found that there seem to be no scale economies present in the production of available seat miles, but that the level of technology has a substantial impact on cost and productivity.

Suggested Citation

  • Neil B. Murphy, 1969. "Sources of Productivity Increases in the U.S. Passenger Airline Industry," Transportation Science, INFORMS, vol. 3(3), pages 233-238, August.
    • Handle: RePEc:inm:ortrsc:v:3:y:1969:i:3:p:233-238
    DOI: 10.1287/trsc.3.3.233
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    Cited by:

    1. Johnston, Ahren & Ozment, John, 2013. "Economies of scale in the US airline industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 51(C), pages 95-108.
    2. Goetz, Andrew R. & Vowles, Timothy M., 2009. "The good, the bad, and the ugly: 30 years of US airline deregulation," Journal of Transport Geography, Elsevier, vol. 17(4), pages 251-263.

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