Contracts, Financing Arrangements, and Public Ownership – An Empirical Analysis of the US Airport Governance Model
AbstractIn contrast to the privatization and regulatory reforms currently underway at European airports, airports in the US remain publicly owned. There, airports negotiate legally binding contracts with airlines and finance large investment projects with revenue bonds. Applying insights from transaction cost economics, we argue that the observed variation in contractual and financing arrangements at US airports corresponds to the parties’ needs for safeguarding and coordination. The case evidence presented reveals that public owners set the framework for private investments and contracting. Airline contracts and capital market control result in efficient investment and act as a check on the cost inefficiency typically linked to public ownership.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Network Industries and Infrastructure (CNI) in its series Working Papers with number 2007-02.
Length: 37 pages
Date of creation: 2007
Date of revision:
Contact details of provider:
Postal: Secretariat H 33, Strasse des 17. Juni 135, D-10623 Berlin
Phone: ++49 / (0)30 / 314 - 25 048
Fax: ++49 / (0)30 / 314 - 26 934
Web page: http://www.cni.tu-berlin.de
More information through EDIRC
Transaction Cost Economics; Contract; Public Ownership; Air Transport;
Find related papers by JEL classification:
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fabian Kirsch) The email address of this maintainer does not seem to be valid anymore. Please ask Fabian Kirsch to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.