Short and long run dynamics of domestic air travel for Auckland region 2008-2019
Date
2022-02
Authors
Davi, Mariano
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Cornejo, Magdalena
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
Understanding the variables that affect airline operations is crucial in a competitive sector
as air transport. The present work will try to shed some light into the determinants of
the demand for domestic air travel for Auckland Region using service-related and geoeconomic
factors. An Error Correction Model will be developed in order to estimate
the income and price elasticities of this particular segment of the market, as well as the
substitution effect with other means of transport and the quality of the service provided.
It is found that lowering the price is not truly effective to stimulate demand in the short
nor in the long run as the main driver of the growth of domestic demand is the income
effect.
Description
Fil: Davi, Mariano. Universidad de San Andrés. Departamento de Economía; Argentina.