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Performance assessment of UK airports: Evidence from a Bayesian dynamic frontier model

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  • Assaf, A. George
  • Gillen, David
  • Barros, Carlos

Abstract

This paper analyzes the cost efficiency of UK airports over the period 1998–2008, using a Bayesian dynamic frontier model. This model provides a more structural explanation for the variation in airports inefficiency than has been presented by previous models, and also allows for cost inefficiency effects. On average, the dynamic frontier results, estimated via the Markov Chain Monte-Carlo simulation, indicate that UK airports improved their efficiency over time. Factors found to be important determinants of cost efficiency include airport size, price regulation, price cap variations and airport competition. Policy implications of the results are derived.

Suggested Citation

  • Assaf, A. George & Gillen, David & Barros, Carlos, 2012. "Performance assessment of UK airports: Evidence from a Bayesian dynamic frontier model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 603-615.
    • Handle: RePEc:eee:transe:v:48:y:2012:i:3:p:603-615
    DOI: 10.1016/j.tre.2011.11.001
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    7. Baños-Pino, José F. & Boto-García, David & Zapico, Emma, 2021. "Persistence and dynamics in the efficiency of toll motorways: The Spanish case," Efficiency Series Papers 2021/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
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