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EC integration and the structure of the Franco-American airline industries: implications for efficiency and welfare

Author: Röller, Lars-Hendrik ; Good, David J ; Sickles, Robin CINSEAD Area: Economics and Political Science Series: Working Paper ; 91/22/EP Publisher: Fontainebleau : INSEAD, 1991.Language: EnglishDescription: 31p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: In this paper the comparative performance of US carriers with their European counterparts since the onset of the deregulatory transition in America is explored. The focus of the paper is on comparisons between French and US carriers, in part because of the strong role that the French national government plays in providing both explicit and implicit subsidies. A simple production function which allows for firm-specific as well as time-specific effects is estimated. With this model, efficiency and productivity differences and their temporal patterns for US and French carriers are investigated. The reduction in the labour force, assuming that relative efficiencies between the US and French carriers are eliminated in the more deregulated post-1993 environment, is calculated..
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In this paper the comparative performance of US carriers with their European counterparts since the onset of the deregulatory transition in America is explored. The focus of the paper is on comparisons between French and US carriers, in part because of the strong role that the French national government plays in providing both explicit and implicit subsidies. A simple production function which allows for firm-specific as well as time-specific effects is estimated. With this model, efficiency and productivity differences and their temporal patterns for US and French carriers are investigated. The reduction in the labour force, assuming that relative efficiencies between the US and French carriers are eliminated in the more deregulated post-1993 environment, is calculated..

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