Models of the Demand for Air Transportation

Philip K. Verleger

Bell Journal of Economics, 1972, vol. 3, issue 2, 437-457

Abstract: Due to the elaborate regulatory procedures established by the U.S. Civil Aeronautics Board, the demand for transportation by air has been the subject of many studies. The purpose of this paper is to compare three different empirical approaches for suitability to the analysis of demand. Two aggregate and one disaggregate approaches are explored. In addition, a more general method of measuring mass in gravity models is introduced. The results from the disaggregated model indicate the inadvisability of using aggregate or cross-sectional models for the analysis of the effects of regulatory policy.

Date: 1972
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