Econometric study of the effects of credit availability on air transport demand in Brazil

Authors

  • Maria Catarina Torres de Carvalho Instituto Tecnológico de Aeronáutica - Brasil
  • Bruno F. Oliveira Instituto Tecnológico de Aeronáutica - Brasil
  • Alessandro V. M. Oliveira Instituto Tecnológico de Aeronáutica - Brasil http://orcid.org/0000-0002-5398-2787

DOI:

https://doi.org/10.14295/transportes.v28i3.1898

Keywords:

Demand. Consumption. Air transportation. Econometrics.

Abstract

Greater availability of credit has the potential effect of boosting consumption in an economy, at least in the short and medium terms. In the case of air transportation, it may stimulate the payment for airline tickets in installments, thus attracting new, lower-income consumers and leveraging a larger number of trips by the existing ones. Additionally, national companies and corporations - potentially favored with higher working capital - may, in theory, spend more on corporate travel. This paper develops an empirical model to test the impact on air transport demand of the higher amount of available credit in the Brazilian economy in the late 2000s. Using statistical data obtained from the National Civil Aviation Agency, we utilized a panel data set of Brazilian city-pairs to estimate an econometric model of air travel demand employing an instrumental variables estimator. With this approach, we were able to test the hypothesis of credit availability in the local economy as one of the explanatory factors of the Brazilian commercial aviation demand in the period.

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Published

2020-12-15

How to Cite

Carvalho, M. C. T. de, Oliveira, B. F., & Oliveira, A. V. M. (2020). Econometric study of the effects of credit availability on air transport demand in Brazil. Transportes, 28(5), 43–56. https://doi.org/10.14295/transportes.v28i3.1898

Issue

Vol. 28 No. 5 (2020)

Section

Articles

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