Event Study in Transport Research: Methodology and Applications

Abstract

The event study method has wide applications in economics and business studies. This mode of investigation focuses on identifying the economic effects of economy‐wide, industry‐ or firm‐specific events on firms or industries. This paper introduces the event study method by first presenting the theoretical and statistical basis of the methodology. Examples of applications in the economics and business studies literature are then used to illustrate the strengths and weaknesses of the method, followed by further analyses of specific applications in the transport industry. Lastly, future opportunities for applying the event study method to transport research are discussed.

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