What is cost of delay?
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The cost of delay refers to the financial impact incurred due to delays in a particular industry. In the mortgage market, the cost of delay resulting from post-crisis interventions and freezing of foreclosures is estimated to be eight percentage points higher compared to pre-crisis levels. The increase in time-related costs varies significantly among states, with judicial foreclosure states experiencing higher costs than statutory foreclosure states. For example, in New York, the highest-cost state, the estimated cost of delay is 19 percentage points higher. These extraordinary increases in time-related costs have prompted policymakers to take action, such as raising guarantee fees in high-cost judicial states . Similarly, in the airline industry, the cost of delay is a significant and growing problem, with domestic airports incurring thousands of hours of delay daily, costing the industry $2 billion annually. One strategy to reduce delay costs is to hold planes at the gate for a short time to minimize airborne congestion. Optimization procedures, such as simultaneous perturbation stochastic approximation (SPSA), can be used to determine the optimal gate holding schedule and reduce initial delay costs by up to 10.3% .
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| Papers (5) | Insight |
|---|---|
| The cost of delay is estimated to be eight percentage points, with significant variation among states, due to post-crisis interventions and freezing of foreclosures. | |
13 Citations | The paper provides an estimate of the cost of delay resulting from post-crisis interventions in the mortgage market and freezing of foreclosures. The cost of delay is estimated to be eight percentage points, with significant variation among states. |
04 Jun 1997 | The paper states that the cost of delay is a serious and increasing problem in the airline industry, and it costs the industry $2 billion a year. |
01 Dec 1998 25 Citations | The cost of delay is a serious and increasing problem in the airline industry, costing the industry $2 billion a year. |
| The cost of delay refers to the financial impact incurred by the airline industry due to delays in air travel, which amounts to $2 billion per year according to the paper. |
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