TY  - JOUR
PY  - 2003//
TI  - How old is too old? An economic approach to replacing military aircraft
JO  - Defence and peace economics
A1  - Greenfield, Victoria
A1  - Persselin, David
SP  - 357
EP  - 368
VL  - 14
IS  - 5
N2  - The US Air Force is asking when to replace its aging aircraft. We develop a framework to identify economically optimal replacement strategies that recognizes cost trade-offs and incorporates age effects. We also preview a stochastic methodology. We use the framework to identify an optimal strategy, defined by the replacement age, for a generic fleet and conduct a sensitivity analysis. Quantitative illustrations show that the range of strategies that provides close-to-optimal outcomes widens as the operating and support (O&S) cost growth rate decreases and the ratio of the acquisition price to the initial O&S cost increases. A wider range implies more decision-making leeway.<p /> 
LA  - 
SN  - 1024-2694
UR  - http://dx.doi.org/10.1080/10242690302926
ID  - ref1
ER  -