Spatial competition for passengers and its influence on efficiency of European airports
AbstractThis study deals with estimation of European airports' efficiency values and their interrelation with a level of competition pressure for passengers among airports. In this paper we present a new adaptive definition of airport's catchment area. Using this definition we develop an indicator of a level of competition pressure, based on overlapping of airport's potential catchment areas. We apply a stochastic frontier model to estimate efficiencies of airports. The method includes the construction of a production frontier for a sample of airports and estimation of individual airports' efficiency values as distances from this frontier. We use a classic production approach to airport activities, where an airport enterprise uses labour resources (a number of employees) and infrastructure (a number of runways, gates, check-ins and parking spaces) for transportation of passengers. Also we use a re-sampling jack-knife technique to test the reliability of airports' efficiencies estimates. We investigate a relationship between a level of competition pressure and airports' operation efficiencies in case of imperfect spatial competition for passengers.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 16930.
Date of creation: 14 Aug 2009
Date of revision:
stochastic frontier; efficiency; airport; spatial competition;
Find related papers by JEL classification:
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-30 (All new papers)
- NEP-EEC-2009-08-30 (European Economics)
- NEP-EFF-2009-08-30 (Efficiency & Productivity)
- NEP-MIC-2009-08-30 (Microeconomics)
- NEP-URE-2009-08-30 (Urban & Real Estate Economics)
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- Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2003. "Access to and competition between airports: a case study for the San Francisco Bay area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(1), pages 71-83, January.
- Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
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