The Sky Is Not Flat: How Discriminatory Is the Access to International Air Services?

Roberta Piermartini and Linda Rousov?
Authors registered in the RePEc Author Service: Linda Rousová

American Economic Journal: Economic Policy, 2013, vol. 5, issue 3, 287-319

Abstract: Using information on 2,300 Air Services Agreements covering 184 countries, we investigate the impact of air services liberalization on passenger flows. We find that a certain level of liberalization is required to have a positive effect on passenger traffic. In particular, we estimate that the multilateralization of multiple designation provisions, Open Skies Agreements and European Economic Area-type agreements would increase passenger traffic worldwide by 0.5, 5, and 10 percent, respectively. The potential endogeneity problem is carefully dealt with using instrumental variables and propensity score matching.

JEL-codes: F13 L51 L93 L98 R41 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/pol.5.3.287
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Citations: View citations in EconPapers (22)

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