This analysis evaluates airfare increases post-policy change at Newark Liberty Airport, suggesting demand influences prices.
This study investigates the price effects of the lifting of take off and landing restrictions at Newark Liberty Airport in October 2016. We use synthetic con trol methods to com pare Newark Liberty's air fares with those of a weighted combination of comparable airports in the USA. By exploiting the policy change as a plau sibly exogenous shock to air fares, we find that non stop and connecting air fares increased by up to 15.7 and 7.7 percent, respectively. Although the airfare increases we find may appear counter in tuitive, these positive price responses are primarily driven by post-inter vention increases in air travel demand.
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Jules Yimga (2023) studied this question.
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