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An Empirical Investigation on the Efficiency, Capacity Ownership of Italian Airports

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Author Info
Paolo Malighetti () (University of Bergamo and ICCSAI)
Gianmaria Martini () (University of Bergamo and ICCSAI)
Stefano Paleari () (University of Bergamo and ICCSAI)
Renato Redondi () (University of Brescia and ICCSAI)

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Abstract

In this paper we study the efficiency of Italian airports applying a DEA model to 34 airports. We find that large airports are more efficient than domestic and regional ones, i.e. small airports have spare capacity since they are more distant from the frontier than large airports. The Tobit regression on the estimated DEA scores shows that efficiency is positively related with the hub premium and with privatisation. Hence we suggest that privatisation incentives to invest in large airports (close to saturation) and development plans to improve the small airports may form the benchmarks of Italian short-run air transportation policy.

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Publisher Info
Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 97 (2007)
Issue (Month): 1 (January-February)
Pages: 157-188
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Handle: RePEc:rpo:ripoec:v:97:y:2007:i:1:p:157-188

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Find related papers by JEL classification:
L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
L59 - Industrial Organization - - Regulation and Industrial Policy - - - Other
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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  1. Fernandes, Elton & Pacheco, R. R., 2002. "Efficient use of airport capacity," Transportation Research Part A: Policy and Practice, Elsevier, vol. 36(3), pages 225-238, March. [Downloadable!] (restricted)
  2. Malcolm Abbott & Su Wu, 2002. "Total Factor Productivity and Efficiency of Australian Airports," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 244-260. [Downloadable!] (restricted)
  3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November. [Downloadable!] (restricted)
  4. Pacheco, R. R. & Fernandes, E., 2003. "Managerial efficiency of Brazilian airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(8), pages 667-680, October. [Downloadable!] (restricted)
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This page was last updated on 2009-11-27.


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