Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports
University of British Columbia - Sauder School of Business
Washington State University
affiliation not provided to SSRN
Journal of Urban Economics, Forthcoming
We study the effects of ownership forms on airports' cost efficiency by applying stochastic frontier analysis to a panel data of the world's major airports. Our key findings are: (a) Countries considering privatization of airports should transfer majority shares to the private sector; (b) Mixed ownership of airport with a government majority should be avoided in favor of even 100% government owned public firm; (c) U.S. airports operated by port authorities should consider to transfer ownership/management to independent airport authorities; and (d) Privatization of one or more airports in cities with multiple airports would improve the efficiency of all airports.
Number of Pages in PDF File: 44
Keywords: ownership forms, airports, translog cost system, stochastic frontier, Bayesian approach
JEL Classification: H11, D24, C11Accepted Paper Series
Date posted: June 4, 2008
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