Airlines’ reaction to high-speed rail entries: Empirical study of the Northeast Asian market

Do light rail transit investments increase employment opportunities? The case of Charlotte, North Carolina

“…The results show that the difference‐in‐difference estimate is not statistically significant. We also applied the approach suggested in Galiani, Gertler, and Schargrodsky () and Wan, Ha, Yoshida, and Zhang () by estimating model 2 from Table without the post and treatment variable (as well as their interaction term) separately for treatment and control blocks on data for the pre‐treatment time period. To test for the common trend assumption, we added year fixed effects by including dummies for 2003–2007 (using 2002 as a reference case) and performed a significance test on the difference between the estimated coefficients of these dummies from the treatment and control group.…”

Impacts of high-speed rail on domestic air transportation in China

“…(2) and (3). The following explanatory variables are adopted following Albalate et al (2015) and Wan et al (2016): Weighted population (WPOP): The variable is introduced to control for the demographic characteristic of a specific OD route that involves both origin and destination cities. Previous research suggests that the higher the weighted population of an air route, the larger both the demand and supply its air service.…”

“…The market interaction between HSR and air transportation has been studied extensively over recent years as can be seen in the summary of the relevant studies shown in Table 1, which was expanded upon the pioneering reviews by Albalate et al (2015) and Wan et al (2016). The classical approach involves an assessment from a supply perspective (Dobruszkes, 2011) or utilizing travel demand modeling (Behrens and Pels, 2012;Clever and Hansen, 2008;Cascetta et al, 2011;Pagliara et al, 2012;Park and Ha, 2006;Steer Davies Gleave, 2006), which suggest that the competition between HSR and air is limited to the medium-distance travel market.…”

“…One step in that direction was taken by Wan et al (2016) who used a dataset covering air transportation services in China, Japan and Korea during the period 1994-2012 using a difference-in-difference approach. Their study showed that the entries of HSR in China lead to a more significant decline in air service supply when measured by seat capacity than had occurred in Japan and Korea, after controlling for the speed of HSR.…”

“…The motivation for this aspect is the inconsistent distance band adopted in the literature. Some studies suggested that HSR has a compelling advantage over automobile and air for a travel distance ranging from 160 to 800 km (Button, 2012), whereas other scholars pointed out the most effective distance for HSR to compete with air is 200-600 km (Vickerman, 1997) while Wan et al (2016) adopted 500 km as the lower bound and 800 km as the upper bound. Scholars tend to agree that the optimal competitive distance of HSR is 3-4 h (Fu et al, 2012) beyond which air transport is favored by the majority of travelers.…”