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Production and cost functions and their application to the port sector : a literature survey

Author

Listed:
  • Beatrice Tovar
  • Sergio Jara-Diaz
  • Lourdes Trujillo

Abstract

Seaports provide multiple services to ships, cargo, and passengers. These services can be performed by a combination of public and private initiatives. Usually, the role of public sector institutions is to regulate and supervise private firms. In performing that task public sector institutions require in-depth knowledge of firms'cost structure. This paper offers a review of the literature about ports'cost structure and of its implications for regulation. The paper argues that the operation of port terminals should be analyzed by means of multiproduct theory. This approach allows the calculation of several cost indicators (economies of scale, scope, and so forth) which are key tools to help regulators.

Suggested Citation

  • Beatrice Tovar & Sergio Jara-Diaz & Lourdes Trujillo, 2003. "Production and cost functions and their application to the port sector : a literature survey," Policy Research Working Paper Series 3123, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3123
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    References listed on IDEAS

    as
    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    2. Caves, Douglas W & Christensen, Laurits R & Tretheway, Michael W, 1980. "Flexible Cost Functions for Multiproduct Firms," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 477-481, August.
    3. John C. Panzar & Robert D. Willig, 1977. "Economies of Scale in Multi-Output Production," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(3), pages 481-493.
    4. Roller, Lars-Hendrik, 1990. "Proper Quadratic Cost Functions with an Application to the Bell System," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 202-210, May.
    5. Burgess, David F, 1974. "A Cost Minimization Approach to Import Demand Equations," The Review of Economics and Statistics, MIT Press, vol. 56(2), pages 225-234, May.
    6. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Wilmsmeier, Gordon & Hoffmann, Jan & Sanchez, Ricardo J., 2006. "The Impact of Port Characteristics on International Maritime Transport Costs," Research in Transportation Economics, Elsevier, vol. 16(1), pages 117-140, January.
    2. Cullinane, Kevin & Talley, Wayne K., 2006. "Introduction," Research in Transportation Economics, Elsevier, vol. 16(1), pages 1-10, January.
    3. Santiago Herrera & Gaobo Pang, 2008. "Eficiency of Infrastructure: The Case of Container Ports," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 9(1), pages 165-194.
    4. Wilmsmeier, Gordon & Sanchez, Ricardo J., 2009. "The relevance of international transport costs on food prices: Endogenous and exogenous effects," Research in Transportation Economics, Elsevier, vol. 25(1), pages 56-66.
    5. Bichou, Khalid, 2006. "Chapter 24 Review of Port Performance Approaches and a Supply Chain Framework to Port Performance Benchmarking," Research in Transportation Economics, Elsevier, vol. 17(1), pages 567-598, January.
    6. Marc Gaudry & Emile Quinet, 2009. "Track wear-and-tear cost by traffic class: Functional form, zero output levels and marginal cost pricing recovery on the French rail network," Working Papers halshs-00574977, HAL.
    7. Brooks, Mary R., 2006. "Chapter 25 Issues in Measuring Port Devolution Program Performance: A Managerial Perspective," Research in Transportation Economics, Elsevier, vol. 17(1), pages 599-629, January.
    8. Alberto Rodrigo González & Nicoletta González-Cancelas & Beatriz Molina Serrano & Alberto Camarero Orive, 2020. "Preparation of a Smart Port Indicator and Calculation of a Ranking for the Spanish Port System," Logistics, MDPI, vol. 4(2), pages 1-22, May.
    9. Lucas Llach & Pablo Schiaffino, 2017. "The Classics, Keynes, and the Keynesians: A Unified Formalization," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(3), pages 530-551, June.

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