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Ready for Take-off? - The Economic Effects of Regional Airport Expansion

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  • Breidenbach, Philipp

Abstract

This paper analyzes whether the expansion of regional airports in Germany caused positive spillover effects on the surrounding economies, exploiting the deregulation of the European aviation market as a quasi-experiment. Such potential spillovers are often used as an argument for the substantial annual subsidies to airports. Previous evaluations often suffer from the problem of reverse causality, since Investment decisions are based on the economic conditions of the region. By contrast, the aviation deregulation under the Single European Market-initiative provides an exogenous incentive for investing in the expansion of existing regional airports. A difference in- differences approach is used to estimate the causal effects of this expansion on regional growth. The results are sobering, though, as there is no evidence for any positive spillover effects.

Suggested Citation

  • Breidenbach, Philipp, 2016. "Ready for Take-off? - The Economic Effects of Regional Airport Expansion," VfS Annual Conference 2016 (Augsburg): Demographic Change 145699, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145699
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    Cited by:

    1. Doerr, Luisa & Dorn, Florian & Gaebler, Stefanie & Potrafke, Niklas, 2020. "How new airport infrastructure promotes tourism: evidence from a synthetic control approach in German regions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 54(10), pages 1402-1412.
    2. Andrea Ascani & Alessandra Faggian & Sandro Montresor & Alessandro Palma, 2021. "Moving (within and across) spatial labour markets in times of COVID-19: evidence from Facebook mobility data on Italian labour market areas," Discussion Paper series in Regional Science & Economic Geography 2021-01, Gran Sasso Science Institute, Social Sciences, revised Jan 2021.
    3. Breidenbach, Philipp & Döhrn, Roland & Neumann, Uwe, 2016. "Stellungsnahme zum Antrag "Wirtschaftspolitische Kehrtwende endlich einleiten"," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 147042, March.
    4. Breidenbach, Philipp & Cohen, Jeffrey P. & Schaffner, Sandra, 2019. "Continuation of air services at Berlin-Tegel and its effects on rental prices," Ruhr Economic Papers 822, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    More about this item

    JEL classification:

    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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