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

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Author Info

  • 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.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3123.

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Date of creation: 01 Aug 2003
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Handle: RePEc:wbk:wbrwps:3123

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Keywords: Environmental Economics&Policies; Business Environment; Information Technology; Economic Theory&Research; Labor Policies; Economic Theory&Research; Environmental Economics&Policies; Business Environment; Business in Development; Information Technology;

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References

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  1. 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 477-81, August.
  2. 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 202-10, May.
  3. Panzar, John C & Willig, Robert D, 1977. "Economies of Scale in Multi-Output Production," The Quarterly Journal of Economics, MIT Press, vol. 91(3), pages 481-93, August.
  4. Burgess, David F, 1974. "A Cost Minimization Approach to Import Demand Equations," The Review of Economics and Statistics, MIT Press, vol. 56(2), pages 225-34, May.
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Cited by:
  1. Santiago Herrera & Gaobo Pang, 2006. "Efficiency Of Infrastructure: The Case Of Container Ports," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 124, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  2. 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.
  3. repec:hal:wpaper:halshs-00574977 is not listed on IDEAS

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