An Economic Framework for Evaluating Military Aircraft Replacement

by Victoria A. Greenfield, David Persselin


Download eBook for Free

FormatFile SizeNotes
PDF file 0.3 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback50 pages $20.00 $16.00 20% Web Discount

Aging aircraft, burdensome operating and support costs, and maintenanceuncertainties have led the United States Air Force to ask when and how toreplace its fleets. In response, RAND has developed an economic frameworkto aid in identifying optimal replacement strategies that recognizetradeoffs among costs and explicitly incorporate the effects of age anduncertainty. In their discussion of the framework, the authors suggest thatage may contribute to higher and less-predictable costs, as may workforcereductions, depot closures, and spare parts shortages. But when is it timeto replace aircraft? The replacement problem lends itself well to economicmodeling, and an economic framework can help the military develop asystematic approach to replacement decisionmaking. The authors identify anoptimal replacement strategy for a generic fleet, comparing the least-costsolutions with and without uncertainty and testing the sensitivity of theresults to key parametric assumptions. They also evaluate policyimplications and suggest opportunities for future research.

Research conducted by

The research described in this report was performed under the auspices of RAND's Project AIR FORCE.

This report is part of the RAND Corporation Monograph report series. The monograph/report was a product of the RAND Corporation from 1993 to 2003. RAND monograph/reports presented major research findings that addressed the challenges facing the public and private sectors. They included executive summaries, technical documentation, and synthesis pieces.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.