IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-19-00443.html

Privatization of Brazilian airports: a synthetic control approach

Author

Listed:
  • Caio Resende

    (Public Administration Post-Graduation Program. IDP)

  • Thiago Caldeira

    (Economics Post-Graduation Program. IDP)

Abstract

This paper evaluates the impact of privatization on commercial revenues of airports. We used a synthetic control methodology to estimate the counterfactual of how commercial revenues from privatized airports in Brazil would have evolved if Infraero - the national public company responsible for operating all major airports in Brazil - continued to operate them. Our results indicate a large, statistically significant and immediate impact in the five airports analyzed. The results were robust to a series of placebo tests.

Suggested Citation

  • Caio Resende & Thiago Caldeira, 2020. "Privatization of Brazilian airports: a synthetic control approach," Economics Bulletin, AccessEcon, vol. 40(1), pages 743-757.
    • Handle: RePEc:ebl:ecbull:eb-19-00443
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I1-P63.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2015. "Comparative Politics and the Synthetic Control Method," American Journal of Political Science, John Wiley & Sons, vol. 59(2), pages 495-510, February.
    2. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    3. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    4. Kaul, Ashok & Klößner, Stefan & Pfeifer, Gregor & Schieler, Manuel, 2015. "Synthetic Control Methods: Never Use All Pre-Intervention Outcomes Together With Covariates," MPRA Paper 83790, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mello, Fabiana Peixoto de & Silva, Francisco Gildemir Ferreira da & Falcão, Viviane, 2025. "Renegotiation drivers in Brazilian airport concessions," Transport Policy, Elsevier, vol. 169(C), pages 116-132.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Albalate & Germà Bel & Ferran A. Mazaira-Font, 2020. "Ensuring Stability, Accuracy and Meaningfulness in Synthetic Control Methods: The Regularized SHAP-Distance Method," IREA Working Papers 202005, University of Barcelona, Research Institute of Applied Economics, revised Apr 2020.
    2. repec:osf:osfxxx:s8ayp_v1 is not listed on IDEAS
    3. Peter Backus & Thien Nguyen, 2021. "The Effect of the Sex Buyer Law on the Market for Sex, Sexual Health and Sexual Violence," Economics Discussion Paper Series 2106, Economics, The University of Manchester.
    4. Diego Zambiasi & Steven Stillman, 2020. "The Pot Rush: Is Legalized Marijuana A Positive Local Amenity?," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 667-679, April.
    5. Kuosmanen, Timo & Zhou, Xun & Eskelinen, Juha & Malo, Pekka, 2021. "Design Flaw of the Synthetic Control Method," MPRA Paper 106328, University Library of Munich, Germany.
    6. Runst, Petrik & Thonipara, Anita, 2020. "Dosis facit effectum why the size of the carbon tax matters: Evidence from the Swedish residential sector," Energy Economics, Elsevier, vol. 91(C).
    7. Giovanni Peri & Derek Rury & Justin C. Wiltshire, 2024. "The Economic Impact of Migrants from Hurricane Maria," Journal of Human Resources, University of Wisconsin Press, vol. 59(6), pages 1795-1829.
    8. Yuan Li & Martin Kleimann & Hans-Jörg Schmerer, 2021. "Estimating causal effects of BRI infrastructure projects based on the synthetic control method," Asia Europe Journal, Springer, vol. 19(1), pages 103-129, December.
    9. Maïmouna Diakite & Jean-François Brun & Souleymane Diarra & Nasser Ary Tanimoune, 2017. "The effects of tax coordination on the tax revenue mobilization in West African Economic and Monetary Union (WAEMU)," CERDI Working papers halshs-01535104, HAL.
    10. Federico Podestà, 2018. "Was Pierson right? A synthetic control analysis of Reagan and Thatcher’s welfare state retrenchments," FBK-IRVAPP Working Papers 2018-02, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    11. Crudu, Federico & Di Stefano, Roberta & Mellace, Giovanni & Tiezzi, Silvia, 2024. "The gray zone: How not imposing a strict lockdown at the beginning of a pandemic can cost many lives," Labour Economics, Elsevier, vol. 89(C).
    12. Damien Bricard & Zeynep Or & Anne Penneau, 2018. "Méthodologie de l’évaluation d’impact de l’expérimentation Parcours santé des aînés (Paerpa)," Working Papers DT74, IRDES institut for research and information in health economics, revised Jun 2018.
    13. Duc A. Nguyen & Steven Brakman & Harry Garretsen & Tristan Kohl, 2024. "Mean Reversion of the German City System After the WWII Bombing of Cities: What Is the Mean?," CESifo Working Paper Series 11423, CESifo.
    14. Felipe Filgueiras, Elias Cavalcante-Filho, Rodrigo de Losso, José Roberto Savoia, 2019. "Law Change in a Regulated Sector Impacts Other Regulated Sectors: Evidence from Brazil," Working Papers, Department of Economics 2019_27, University of São Paulo (FEA-USP).
    15. Pier Basaglia & Sophie M. Behr & Moritz A. Drupp, 2023. "De-Fueling Externalities: How Tax Salience and Fuel Substitution Mediate Climate and Health Benefits," Discussion Papers of DIW Berlin 2041, DIW Berlin, German Institute for Economic Research.
    16. Bibek Adhikari, 2022. "A Guide to Using the Synthetic Control Method to Quantify the Effects of Shocks, Policies, and Shocking Policies," The American Economist, Sage Publications, vol. 67(1), pages 46-63, March.
    17. Daniel Albalate & Germà Bel & Ferran A. Mazaira-Font, 2021. "Decoupling synthetic control methods to ensure stability, accuracy and meaningfulness," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(4), pages 549-584, December.
    18. Breinlich, Holger & Leromain, Elsa & Novy, Dennis & Sampson, Thomas, 2020. "Voting with their money: Brexit and outward investment by UK firms," European Economic Review, Elsevier, vol. 124(C).
    19. Becker, Maike & Pfeifer, Gregor & Schweikert, Karsten, 2021. "Price Effects of the Austrian Fuel Price Fixing Act: A Synthetic Control Study," Energy Economics, Elsevier, vol. 97(C).
    20. Steinkraus, Arne, 2018. "Rethinking Policy Evaluation – Do Simple Neural Nets Bear Comparison with Synthetic Control Method?," EconStor Preprints 177390, ZBW - Leibniz Information Centre for Economics.
    21. Klößner, Stefan & Pfeifer, Gregor, 2015. "Synthesizing Cash for Clunkers: Stabilizing the Car Market, Hurting the Environment," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113207, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-19-00443. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.