Debt, moral hazard and airline safety An empirical evidence

Dionne, Georges; Gagné, Robert M.; Gagnon, François; Vanasse, Charles

doi:10.1016/s0304-4076(97)82989-2

Cited by 84 publications

(62 citation statements)

References 24 publications

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“…11 The reporting is also the responsibility of the ARTICLE IN PRESS 6 A general overview of the economics of transportation safety is found in Savage (1999a). 7 In particular this has focused on the impact of accidents on such things as an airlines share price or its on-going business (e.g., revenues or passenger numbers); the literature on this is extensive, Nancy Rose (1992) offers a survey of the literature, but also see Agrangi et al (1997) and Dionne et al (1997). 8 Regarding the direct links between deregulation and airlines safety see Moses and Savage (1990), Savage (1999b) and Kanafani and Keeler (1990).…”

Section: International Comparisonsmentioning

confidence: 99%

Are measures of air-misses a useful guide to air transport safety policy?

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Drexler

2006

Journal of Air Transport Management

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Section: International Comparisonsmentioning

confidence: 99%

Are measures of air-misses a useful guide to air transport safety policy?

Button

Drexler

2006

Journal of Air Transport Management

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“…Over the sample the number of accidents ranges from 0 to 14 with mean 1.7 and variance 4.9. Similar data were also analyzed by Dionne, Gagné, Gagnon, and Vanasse (1997) for Canadian air accidents during 1976 and 1987 for more than 120 carriers.…”

Section: Number Of Airline Incidentsmentioning

confidence: 91%

Markov Chain Monte Carlo Analysis of Correlated Count Data

Chib

Winkelmann

2001

Journal of Business & Economic Statistics

211

167

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This article is concerned with the analysis of correlated count data. A class of models is proposed in which the correlation among the counts is represented by correlated latent effects. Special cases of the model are discussed and a tuned and efficient Markov chain Monte Carlo algorithm is developed to estimate the model under both multivariate normal and multivariate-t assumptions on the latent effects. The methods are illustrated with two real data examples of six and sixteen variate correlated counts. This article is concerned with the analysis of correlated count data. A class of models is proposed in which the correlation among the counts is represented by correlated latent effects. Special cases of the model are discussed and a tuned and ef cient Markov chain Monte Carlo algorithm is developed to estimate the model under both multivariate normal and multivariate-t assumptions on the latent effects. The methods are illustrated with two real data examples of six and sixteen variate correlated counts.

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“…The Poisson probability distribution has been used extensively to model infrequent events with count data such as McCullagh and Nelder (1983) for ship accidents, Hausman et al (1984) for patents, Rose (1990) and Dionne et al (1997) for air crashes, Michener and Tighe (1992) for highway fatalities, and Keeler (1994) for the effect of regulation on highway fatalities, and in numerous studies relating to disease frequencies in the biomedical sciences.…”

Section: Methodology and Datamentioning

confidence: 99%

“…She finds an insignificant correlation for large carriers between accidents and profitability but finds a weakly significant correlation for small and medium carriers. Dionne et al (1997) study Canadian airlines and find that airlines experiencing financial difficulties are more likely to suffer from the moral hazard problem.…”

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confidence: 99%

Financial health and airline safety

Noronha

Singal

2003

Manage Decis Econ

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Agency-cost models suggest that firms may pursue riskier strategies in times of financial distress. For example, stockholders of financially weak firms in industries where quality cannot be observed ex-ante have an incentive to compromise safety and quality to maximize current period profit. However, there exists only a modest amount of empirical evidence that relates financial health to the risk-taking behavior of firms. We explore this relationship for the airline industry. Using bond ratings to proxy for financial health and airline mishaps to measure safety, we find a significant correlation: airlines with higher quality bond ratings are less likely to experience mishaps than airlines with lower quality ratings. On average, a whole letter grade better bond rating is associated with a 10% lower probability of a mishap. Copyright © 2004 John Wiley & Sons, Ltd.

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Debt, moral hazard and airline safety An empirical evidence

Cited by 84 publications

References 24 publications

Are measures of air-misses a useful guide to air transport safety policy?

Are measures of air-misses a useful guide to air transport safety policy?

Markov Chain Monte Carlo Analysis of Correlated Count Data

Financial health and airline safety

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