Spatial Competition and Cooperation Effects on European Airports' Efficiency
AbstractThis paper is devoted to statistical analysis of spatial competition and cooperation between European airports. We propose a new multi-tier modification of spatial models, which allow estimating of spatial influence varying with the distance. Competition and cooperation effects don't diminish steadily with moving from a given airport, their structure is more complex. The suggested model is based on a set of distance tiers, with different possible effects inside each tier. We apply the proposed modification to the standard spatial stochastic frontier model and use it to estimation of competition and cooperation effects for European airport and airport's efficiency levels. We identify three tiers of spatial influence with different completion-cooperation ratio in each one. In the first, closest to an airport, tier we note significant advantage of cooperation effects over competition ones. In the second, more distant, tier we discover the opposite situation – significant advantage of completion effects. The last tier's airports doesn't influence significantly. In this paper we also consider some other possible applications of the proposed spatial multi-tier model.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 25050.
Date of creation: Aug 2010
Date of revision:
spatial stochastic frontier; airport efficiency; competition; cooperation;
Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-25 (All new papers)
- NEP-COM-2010-09-25 (Industrial Competition)
- NEP-EFF-2010-09-25 (Efficiency & Productivity)
- NEP-EUR-2010-09-25 (Microeconomic European Issues)
- NEP-URE-2010-09-25 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lavado, Rouselle F. & Barrios, Erniel B., 2010.
"Spatial Stochastic Frontier Models,"
Discussion Papers, Philippine Institute for Development Studies
DP 2010-08, Philippine Institute for Development Studies.
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