The Crash of General Aviation: A Public Choice Perspective.
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH
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Using the public choice and law and economics approaches, this dissertation centers on how excessive rent-seeking contributed to the decline of an entire industry. While Olsons 1982 The Rise and Decline of Nations takes the broad view of how a nation can decline under rent-seeking, this research will show how this occurs for a particular segment that makes up part of the national economy. In this case, I focus attention on the American general aviation single-engine piston industry and show how two decades of rent seeking, especially by the legal profession, has reduced this industrys output by over ninety-five percent Using a public choice framework, my research provides explanations for the rising costs of flying, the drop in demand for new general aviation aircraft and the recent attempts by the general aviation industry to reverse the market decline. The research will show how many of the liability theories put forth by law and economics scholars fail to achieve their efficiency claims. After carefully examining the structural characteristics of the relevant institutions and the motives of the interest groups involved, I use a geographically based voting model to analyze support for the 1994 General Aviation Product Liability Reform Bill. The results generally support the theory that the legal profession opposed the bill while states with aviation interests supported the measure.
- Commercial and General Aviation
- Economics and Cost Analysis