Persistence on airline accidents

Carlos Barros, Joao R. Faria and Luis Gil-Alana
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Joao R. Faria: Nottingham Trent University

No 08/09, Faculty Working Papers from School of Economics and Business Administration, University of Navarra

Abstract: This paper analyses airline accidents data from 1927-2006. The fractional integration methodology is adopted. It is shown that airline accidents are persistent and (fractionally) cointegrated with airline traffic. Thus, there exists an equilibrium relation between air accidents and airline traffic, with the effect of the shocks to that relationship disappearing in the long run. Policy implications are derived for countering accidents events.

Pages: 27 pages
Date: 2009-11-01
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Forthcoming in Disasters

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