Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports

44 Pages Posted: 4 Jun 2008

See all articles by Tae-Hoon Oum

Tae-Hoon Oum

University of British Columbia (UBC) - Sauder School of Business

Jia Yan

Washington State University

Chunyan Yu

affiliation not provided to SSRN

Abstract

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.

Keywords: ownership forms, airports, translog cost system, stochastic frontier, Bayesian approach

JEL Classification: H11, D24, C11

Suggested Citation

Oum, Tae-Hoon and Yan, Jia and Yu, Chunyan, Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports. Journal of Urban Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1139445

Tae-Hoon Oum

University of British Columbia (UBC) - Sauder School of Business ( email )

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada

Jia Yan (Contact Author)

Washington State University ( email )

P.O. Box 646210
Hulbert Hall 101
Pullman, WA 99164-6210
United States

Chunyan Yu

affiliation not provided to SSRN

Register to save articles to
your library

Register

Paper statistics

Downloads
342
Abstract Views
1,458
rank
87,894
PlumX Metrics