Full Citation

Title: Causal Effect of Airport Hubs on Urban Growth

Citation Type: Miscellaneous

Publication Year: 2015

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Abstract: This paper considers the marginal effect of an airport hub on a metropolitan area’s economy. Specif- ically, it considers the effect of an airport being designated as a “hub” by an airline on its cities economic fortunes. This is estimated relative to cities that have airports, but not hub airports. Using panel re- gression methods and event study techniques, I find that while hub airports do not significantly affect city employment levels overall, hubs do contribute an effect of 1-2 percent on personal income to their respective cities, as well as establishment growth of 1-2 percent. I find the effects of hubs on employment to be most salient in the air transportation and hotel industries, as well as overall closest to the airport; however, the same is not necessarily true for other sectors where tourism might affect employment. This implies that the effects of hub airports, in most cases, likely operate through their ability to facilitate business travel.

Url: https://marroninstitute.nyu.edu/uploads/files/McGraw_hubs_paper.pdf

User Submitted?: No

Authors: McGraw, Marquise, J

Publisher: Middlebury College

Data Collections: IPUMS NHGIS

Topics: Land Use/Urban Organization, Other

Countries: United States