A case study on Germany's aviation tax using the synthetic control approach

Daniel Borebly ()
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Daniel Borebly: Department of Economics, University of Strathclyde

No 1816, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: The German Aviation Tax (AT) is a tax levied on departing passengers from German airports. The synthetic control method is used to generate counterfactual passenger numbers for German airports. The synthetic control method is used to generate counterfactual passenger numbers for German airports, and for airports outside Germany but near the German border. The results presented are consistent with cross-border substitution of passenger demand in response to AT. Most AT exempt airports near the borders have made sizable, significant, gains in passenger numbers since Germany introduced AT. Within Germany, there appears to be a clear distinction in the impact on small/regional airports and that on larger hubs.

Keywords: aviation taxes; passenger demand; synthetic control (search for similar items in EconPapers)
JEL-codes: H26 H30 L93 (search for similar items in EconPapers)
Pages: 61 pages
Date: 2018-10
New Economics Papers: this item is included in nep-eur, nep-law, nep-pbe, nep-pub and nep-tre
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