Sources of Productivity Increases in the U.S. Passenger Airline Industry

Neil B. Murphy
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Neil B. Murphy: Leasco Systems & Research Corporation, Bethesda, Maryland

Transportation Science, 1969, vol. 3, issue 3, 233-238

Abstract: The purpose of this paper is to estimate cost junctions for the U.S. passenger airline industry in order to determine the sources of recent observed productivity increases. A cost function is derived from the Cobb-Douglas production function, and the parameters of that reduced form equation are estimated. Special attention is given to effect of technology on costs. In general, it was found that there seem to be no scale economies present in the production of available seat miles, but that the level of technology has a substantial impact on cost and productivity.

Date: 1969
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:3:y:1969:i:3:p:233-238

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