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Dynamic Effects Of Economic Growth On U.s. Air Passenger And Freight Services

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  • Junwook, Chi
  • Jungho, Baek

Abstract

This paper examines the short- and long-run effects of economic growth and market shocks (e.g., 9/11 terrorist attacks, Iraq war, SARS epidemic, and 2008 financial crisis) on air passenger and freight services using an autoregressive distributed lag (ARDL) approach to cointegration. Results show that, in the long-run, both air passenger and freight services tend to increase with economic growth. In the short-run, however, only air passenger service is responsive to economic growth. Finally, only the 9/11 terrorist attacks and the SARS have detrimental effects on air passenger demand both in the short- and long-run, and in the long-run, respectively. However, those market shocks are found to have little impact on air freight demand.

Suggested Citation

  • Junwook, Chi & Jungho, Baek, 2013. "Dynamic Effects Of Economic Growth On U.s. Air Passenger And Freight Services," 54th Annual Transportation Research Forum, Annapolis, Maryland, March 21-23, 2013 206948, Transportation Research Forum.
    • Handle: RePEc:ags:ndtr13:206948
    DOI: 10.22004/ag.econ.206948
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    References listed on IDEAS

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