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Cost efficiency of African airports using a finite mixture model

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  • Barros, Carlos Pestana
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    Abstract

    This paper evaluates the operational activities of African airports using a finite mixture model that allows us to control for unobserved heterogeneity. In doing so, a stochastic frontier latent class model, which allows for the existence of different technologies, is adopted to estimate cost frontiers. This procedure not only enables us to identify different groups of African airports analysed from Angola and Mozambique, but also permits the analysis of their cost efficiency. The main result is that three groups are identified in the sample, each equipped with completely different "technologies", suggesting that distinct business strategies need to be adapted to the characteristics of the airports. Some managerial implications are developed.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transport Policy.

    Volume (Year): 18 (2011)
    Issue (Month): 6 (November)
    Pages: 807-813

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    Handle: RePEc:eee:trapol:v:18:y:2011:i:6:p:807-813

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    Related research

    Keywords: Africa Airports Stochastic cost frontier Latent class model Technical efficiency Panel data;

    References

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    24. Marques, Rui Cunha, 2011. "Together or separately? The efficiency and market structure of Portuguese airports," Journal of Air Transport Management, Elsevier, vol. 17(2), pages 136-139.
    25. Pestana Barros, Carlos & Dieke, Peter U.C., 2007. "Performance evaluation of Italian airports: A data envelopment analysis," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 184-191.
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    Cited by:
    1. Martín, Juan Carlos & Rodríguez-Déniz, Héctor & Voltes-Dorta, Augusto, 2013. "Determinants of airport cost flexibility in a context of economic recession," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 70-84.
    2. Voltes-Dorta, Augusto & Lei, Zheng, 2013. "The impact of airline differentiation on marginal cost pricing at UK airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 72-88.

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