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The income elasticity of air travel: A meta-analysis

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  • Gallet, Craig A.
  • Doucouliagos, Hristos
Abstract
There is much disparity in estimates of the income elasticity of air travel across the literature. We examine this disparity by applying meta-regression techniques. Controlling for several issues, including publication selection bias, while our preferred baseline income elasticity estimate of 1.186 is consistent with air travel being a luxury and a slightly immature market, there are several features of the literature which sway the income elasticity away from this baseline. For instance, the income elasticity increases to 1.546 on international routes, yet decreases to 0.633 when air fare is included in a dynamic specification of demand, ceteris paribus. Other characteristics of the literature, such as those involving various data and estimation choices, have less influence on the reported income elasticity.

Suggested Citation

  • Gallet, Craig A. & Doucouliagos, Hristos, 2014. "The income elasticity of air travel: A meta-analysis," Annals of Tourism Research, Elsevier, vol. 49(C), pages 141-155.
    • Handle: RePEc:eee:anture:v:49:y:2014:i:c:p:141-155
    DOI: 10.1016/j.annals.2014.09.006
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    Cited by:

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    13. John P. A. Ioannidis & T. D. Stanley & Hristos Doucouliagos, 2017. "The Power of Bias in Economics Research," Economic Journal, Royal Economic Society, vol. 127(605), pages 236-265, October.
    14. Hanson, Daniel & Toru Delibasi, Tuba & Gatti, Matteo & Cohen, Shamai, 2022. "How do changes in economic activity affect air passenger traffic? The use of state-dependent income elasticities to improve aviation forecasts," Journal of Air Transport Management, Elsevier, vol. 98(C).
    15. Wang, Sen & Gao, Yi, 2021. "A literature review and citation analyses of air travel demand studies published between 2010 and 2020," Journal of Air Transport Management, Elsevier, vol. 97(C).
    16. repec:wly:econjl:v::y:2017:i:605:p:f236-f265 is not listed on IDEAS
    17. Bruderer Enzler, Heidi, 2017. "Air travel for private purposes. An analysis of airport access, income and environmental concern in Switzerland," Journal of Transport Geography, Elsevier, vol. 61(C), pages 1-8.
    18. Shawn Berry, 2024. "Is the price right? Reconceptualizing price and income elasticity to anticipate price perception issues," Papers 2402.05152, arXiv.org, revised Feb 2024.
    19. Tveter, Eivind & Holmgren, Johan, 2024. "Statistical power and productivity effects of transport investments: A critical review," Research in Transportation Economics, Elsevier, vol. 105(C).
    20. Rockie U Kei Kuok & Tay T.R. Koo & Christine Lim, 2024. "Air transport capacity and tourism demand: A panel cointegration approach with cross-sectionally augmented autoregressive distributed lag (CS-ARDL) model," Tourism Economics, , vol. 30(3), pages 702-727, May.
    21. Panagiotis Fragkos, 2022. "Decarbonizing the International Shipping and Aviation Sectors," Energies, MDPI, vol. 15(24), pages 1-25, December.
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    25. Becken, Susanne & Carmignani, Fabrizio, 2020. "Are the current expectations for growing air travel demand realistic?," Annals of Tourism Research, Elsevier, vol. 80(C).

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