An Econometric Analysis of Enroute and Terminal Air Traffic Control.
Final rept. 31 Dec 75-30 Jun 76,
NOAH (J WATSON) ASSOCIATES INC ALEXANDRIA VA
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This study was undertaken in connection with a comprehensive evaluation of proposed new investments in the upgraded Third Generation Air Traffic Control System. It involved a quantitative analysis of the relationship between ATC system outputs and inputs. Outputs are defined in terms of operations handled while inputs consist of labor and capital. Separate production functions were estimated for enroute ARTCC and terminal tower control operations. In each case, two different sets of data were used. One consisted of a cross-section of observations on individual facilities in a single year. The other was a time series of annual observations on that portion of the system taken as a whole. Following development of the production functions, an optimality analysis was conducted. Estimates of the unit cost of labor and capital were developed. These were combined, via a mathematical optimization procedure, with the preferred production functions to compute least-cost combinations of labor and capital for various levels of ATC service demand. The results indicate that, for both centers and towers, substantial additions to the net capital stock will be required over the years to come if expansion of the system to meet growing service demand is to be economically efficient. Author
- Terminal Flight Facilities
- Air Navigation and Guidance