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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

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    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)

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    More about this item

    Keywords

    Airports; Privatization; Public infrastructure; Synthetic control method;
    All these keywords.

    JEL classification:

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

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