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The Review of Economics and Statistics Vol. 51 No. 3 1969

A Long-Run Cost Function for the Local Service Airline Industry: An Experiment in Non-Linear Estimation

George Eads; Marc Nerlove; William Raduchel

Abstract

N this study we formulate and estimate a cost function for the United States local service airline industry. Section I discusses certain characteristics of the industry and its regulation by the Civil Aeronautics Board (CAB) which influence the form of the cost function and the method of estimation chosen. The model is outlined in section II. The data available and the method of estimation are discussed in section III. Some tentative conclusions are presented in section IV.

DOI
10.2307/1926561
Volume
51
Issue
3
Pages
258
Sources
openalex crossref

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