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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 bills, and maintenanceuncertainties have led the U.S. Air strength to invite whilst and the way toreplace its fleets. In reaction, RAND has constructed an fiscal frameworkto reduction in deciding on optimum alternative suggestions that recognizetradeoffs between expenses and explicitly contain the results of age anduncertainty. of their dialogue of the framework, the authors recommend thatage may well give a contribution to raised and less-predictable bills, as could workforcereductions, depot closures, and spare components shortages. but if is it timeto exchange plane? The substitute challenge lends itself good to economicmodeling, and an financial framework may help the army increase asystematic method of substitute decisionmaking. The authors establish anoptimal alternative method for a commonplace fleet, evaluating the least-costsolutions with and with out uncertainty and trying out the sensitivity of theresults to key parametric assumptions. in addition they evaluation policyimplications and recommend possibilities for destiny research.

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