Does an increase in subsidies lead to changes air fares? Empirical evidence from Spain

This paper examines the impact on prices of various regulatory changes in residents' flight subsidies implemented in Spain in recent years. It draws on a large sample of domestic routes for the period 2003-2013 to estimate a price equation that accounts for the panel data and the potential endo...

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Detalles Bibliográficos
Autores: Fageda, Xavier, 1975-, Jiménez González, Juan Luis, Valido, Jorge
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2016
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:2445/107723
Acceso en línea:https://hdl.handle.net/2445/107723
Access Level:acceso abierto
Palabra clave:Línies aèries
Subsidis familiars
Viatges aeris
Condicions econòmiques
Viatgers
Airlines
Family allowances
Air travel
Economic conditions
Travelers
Descripción
Sumario:This paper examines the impact on prices of various regulatory changes in residents' flight subsidies implemented in Spain in recent years. It draws on a large sample of domestic routes for the period 2003-2013 to estimate a price equation that accounts for the panel data and the potential endogeneity of specific explanatory variables. Price differences were not found between the treated routes (routes affected by the discounts) and the control routes (routes not affected by the discounts). This is the case regardless of the discount percentage on prices that island residents enjoy.