Economics of technological change - A joint model for the aircraft and airline industries

Abstract

The principal focus of this econometric model is on the process of technological change in the U.S. aircraft manufacturing and airline industries. The problem of predicting the rate of introduction of current technology aircraft into an airline's fleet during the period of research, development, and construction for new technology aircraft arises in planning aeronautical research investments. The approach in this model is a statistical one. It attempts to identify major factors that influence transport aircraft manufacturers and airlines, and to correlate them with the patterns of delivery of new aircraft to the domestic trunk carriers. The functional form of the model has been derived from several earlier econometric models on the economics of innovation, acquisition, and technological change.