Research Papers
Research Papers
Embedded Files
Abstract
Abstract
This paper studies whether airline operations are affected by provincial jet fuel taxes in Brazil. Using aviation and aviation kerosene tax data from the Brazilian National Civil Aviation Agency from 2017 to 2024, we find that a one percentage point increase in fuel tax results in a 0.13 percent decrease in jet fuel consumption for non-turboprop planes. Further regressions suggest that airlines reduce fuel consumption primarily by two methods: (i) reducing flight speeds and (ii) operating more fuel-efficient airplanes. Airlines decrease their flight speeds by 0.2 percent on average with a one percentage point increase in the tax rate, and the inverse fuel efficiency drops by 0.1 percent. These results are robust when airlines are slow to adjust and lag their response by a period. Each percentage point increase in fuel tax in every state decreases annual fuel consumption by approximately 4.52 million liters and CO2 emissions by 14.23 thousand metric tons of CO2, according to the IATA conversion. The environmental benefit, in dollar terms, would be $2.7 million.
Abstract
Abstract
This paper studies personalized pricing under information frictions and price count uncertainty in a differentiated-products, duopoly model. We first characterize a pricing equilibrium, where the high-valued firm’s price distribution is non-degenerate without a mass point, and the low-valued firm’s price distribution is non-degenerate with a mass point at the support upper bound. This paper also examines the market performance of personalized pricing compared to uniform pricing under partial market coverage, particularly in the presence of captive consumers resulting from information frictions. In numerical simulations for some IID, log-concave valuation distribution cases, we find that information frictions can significantly change the impact of personalized pricing for low production costs.
Abstract
Abstract
This paper tests the hypothesis that higher social capital — such as interpersonal trust and trust in government — is associated with greater local government spending on community development, including education. Some OLS estimates indicate significantly positive effects of social capital on local government expenditures and local school expenditures, but these findings are mixed with other insignificant estimates. 2SLS IV regressions with state-fixed effects find that social capital has no significant relationship with either local government expenditures or local school expenditures in US counties.
Page updated
Report abuse