airlines_merger_simulation

This project demonstrates how to estimate market demand and simulate mergers, designed as a teaching tool for master's students in the University of Wisconsin–Madison Economics program.

OVERVIEW:

This project estimates demand and simulates the merger process between airlines.

PROJECT STRUCTURE:

• src/: Code that downloads, cleans, and estimates demand.
• data/: Input data files (airline data, routes, financial data)
  • raw/: Raw data from sources
  • processed/: Processed data from functions
• doc/: Useful documentation and screenshots for running example and outputs.
• secured_keys/: This folder must contain a JSON file (api_keys.json) used to access FRED and Census if necessary.

PROGRESS AND RUNNING ORDER:

1. Run data downloads .py files, see instructions (Run: download_db1b.py)
2. Preprocess downloaded data: processing_data.do
3. Demand estimation: demand_estimation.do
4. Merger simulation

REQUIREMENTS:

• Python 3.x
• Required packages listed in requirements.txt
• Stata 17

For detailed information about specific files, please refer to inline documentation.