Production and Cost Functions and Their Application to the Port Sector: A Literature Survey

32 Pages Posted: 20 Apr 2016

See all articles by Beatriz Tovar

Beatriz Tovar

Universidad de Las Palmas de Gran Canaria

Sergio R. Jara-Diaz

Universidad de Chile

Lourdes Trujillo

Departamento de Analisis Economico Aplicado; University College of London (UCL)

Date Written: August 2003

Abstract

Seaports provide multiple services to ships, cargo, and passengers. These services can be performed by a combination of public and private initiatives. Usually, the role of public sector institutions is to regulate and supervise private firms. In performing that task public sector institutions require in-depth knowledge of firms' cost structure. This paper offers a review of the literature about ports' cost structure and of its implications for regulation. The paper argues that the operation of port terminals should be analyzed by means of multiproduct theory. This approach allows the calculation of several cost indicators (economies of scale, scope, and so forth) which are key tools to help regulators.

This paper - a product of the Finance and Private Sector Development Division, World Bank Institute - is part of a larger effort in the institute to provide policy-relevant material to infrastructure regulators and policymakers.

Suggested Citation

Tovar, Beatriz and Jara-Diaz, Sergio R. and Trujillo-Castellano, Lourdes, Production and Cost Functions and Their Application to the Port Sector: A Literature Survey (August 2003). Available at SSRN: https://ssrn.com/abstract=636543

Beatriz Tovar

Universidad de Las Palmas de Gran Canaria ( email )

Campus de Tafira
35017 Las Palmas, Las Palmas 35017
Spain

Sergio R. Jara-Diaz

Universidad de Chile ( email )

Pío Nono Nº1, Providencia
Santiago, R. Metropolitana 7520421
Chile

Lourdes Trujillo-Castellano (Contact Author)

Departamento de Analisis Economico Aplicado ( email )

Universidad de Las Palmas de Gran Canaria
Campus de Tafira
Las Palmas de Gran Canaria, Las Palmas 35017
Spain

University College of London (UCL)

Chadwick Building
Gower Street
London, London WC1E 6
United Kingdom

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