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Ownership forms matter for airport efficiency: A stochastic frontier investigation of worldwide airports

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Author Info
Oum, Tae H.
Yan, Jia
Yu, Chunyan
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) US 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.

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File URL: http://www.sciencedirect.com/science/article/B6WMG-4S2661K-1/2/6b54eff9804fa3e2d6612561f591e526
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Publisher Info
Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 64 (2008)
Issue (Month): 2 (September)
Pages: 422-435
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Handle: RePEc:eee:juecon:v:64:y:2008:i:2:p:422-435

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Web page: http://www.elsevier.com/locate/inca/622905

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Related research
Keywords: Ownership forms Airports Translog cost system Stochastic frontier Bayesian approach;

Cited by:
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  1. Malighetti, G & Martini, G & Paleari, S & Redondi, R, 2009. "The Impacts of Airport Centrality in the EU Network and Inter- Airport Competition on Airport Efficiency," MPRA Paper 17673, University Library of Munich, Germany. [Downloadable!]
  2. Juan Martín & Concepción Román & Augusto Voltes-Dorta, 2009. "A stochastic frontier analysis to estimate the relative efficiency of Spanish airports," Journal of Productivity Analysis, Springer, vol. 31(3), pages 163-176, June. [Downloadable!] (restricted)
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