An Economic Framework for Evaluating Military Aircraft by Victoria A. Greenfield,David Persselin

By Victoria A. Greenfield,David Persselin

getting older airplane, burdensome working and aid expenses, and maintenanceuncertainties have led the USA Air strength to invite whilst and the way toreplace its fleets. In reaction, RAND has built an fiscal frameworkto relief in deciding upon optimum substitute concepts that recognizetradeoffs between charges and explicitly include the consequences of age anduncertainty. of their dialogue of the framework, the authors recommend thatage might give a contribution to better and less-predictable expenses, as might workforcereductions, depot closures, and spare elements shortages. but if is it timeto substitute plane? The alternative challenge lends itself good to economicmodeling, and an financial framework will help the army boost asystematic method of substitute decisionmaking. The authors determine anoptimal substitute process for a well-known fleet, evaluating the least-costsolutions with and with out uncertainty and checking out the sensitivity of theresults to key parametric assumptions. in addition they evaluation policyimplications and recommend possibilities for destiny research.

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