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.

Acknowledgements

The research was made possible by a General Research Grant of the Hong Kong Polytechnic University (G.21.37.U126). Earlier drafts of this paper were presented at Tokyo University of Marine Science and Technology, and Japan Transport Policy Research Institute during the author’s visit at the former institution as Visiting Professor. I thank the editor and three anonymous referees for their helpful comments and suggestions. The usual disclaimer applies.