| Popis: |
This paper introduces a revealed preference methodology to estimate the value to the United States Air Force of expediting F-15 fighter jet Programmed Depot Maintenance (PDM). We rely on the fact the Air Force has chosen to pay for intermittent PDM on F-15s to assert F-15s must have enough value after PDM visits to justify PDM costs. Air Force expenditure data suggest a typical Fiscal Year 2005 PDM visit cost about $3.2 million. Using the aircraft valuation curves consistent with PDM being worthwhile, we find that expediting an F-15′s last PDM visit by a month must be worth at least $60,000. However, using a plausible annual aircraft valuation decline rate, we find that expediting an old F-15′s last PDM visit by a month would be worth around $75,000 while expediting a new F-15′s first PDM visit by a month would be worth more than $180,000. |
