Ready for Take-off? - The Economic Effects of Regional Airport Expansion

Philipp Breidenbach ()

VfS Annual Conference 2016 (Augsburg): Demographic Change from Verein für Socialpolitik / German Economic Association

Abstract: This paper analyzes whether the expansion of regional airports in Germany caused positive spillover effects on the surrounding economies, exploiting the deregulation of the European aviation market as a quasi-experiment. Such potential spillovers are often used as an argument for the substantial annual subsidies to airports. Previous evaluations often suffer from the problem of reverse causality, since Investment decisions are based on the economic conditions of the region. By contrast, the aviation deregulation under the Single European Market-initiative provides an exogenous incentive for investing in the expansion of existing regional airports. A difference in- differences approach is used to estimate the causal effects of this expansion on regional growth. The results are sobering, though, as there is no evidence for any positive spillover effects.

JEL-codes: H54 R42 R51 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-eur, nep-geo, nep-tre and nep-ure
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https://www.econstor.eu/bitstream/10419/145699/1/VfS_2016_pid_6683.pdf (application/pdf)

Related works:
Working Paper: Ready for Take-off? The Economic Effects of Regional Airport Expansion (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc16:145699

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