Airports and Urban Growth: Evidence from a Quasi-Natural Policy Experiment

38 Pages Posted: 10 Aug 2012 Last revised: 12 Jun 2022

See all articles by Bruce A. Blonigen

Bruce A. Blonigen

University of Oregon - Department of Economics; National Bureau of Economic Research (NBER)

Anca D. Cristea

University of Oregon - Department of Economics

Date Written: August 2012

Abstract

While significant work has been done to examine the determinants of regional development, there is little evidence on the contribution of air services toward this outcome. This paper exploits the unexpected market changes induced by the 1978 Airline Deregulation Act to bring new evidence on the link between airline traffic and local economic growth. Using data for almost 300 Metropolitan Statistical Areas (MSAs) over a two decade time period centered around the policy change, we exploit time variation in long-run growth rates to identify the effects of airline traffic on population, income and employment growth. Our results suggest that air service has a significant positive effect on regional growth, with the magnitude of the effects differing by MSA size and industrial specialization.

Suggested Citation

Blonigen, Bruce A. and Cristea, Anca D., Airports and Urban Growth: Evidence from a Quasi-Natural Policy Experiment (August 2012). NBER Working Paper No. w18278, Available at SSRN: https://ssrn.com/abstract=2127544

Bruce A. Blonigen (Contact Author)

University of Oregon - Department of Economics ( email )

1285 University of Oregon
Eugene, OR 97403
United States
541-346-4680 (Phone)
541-346-1243 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Anca D. Cristea

University of Oregon - Department of Economics ( email )

1245 University of Oregon
Eugene, OR 97403
United States

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