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Efficiency and patterns of service mix in airport companies: An input distance function approach

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  • Abrate, Graziano
  • Erbetta, Fabrizio

Abstract

In this paper an input distance function approach is used to evaluate efficiency and technological characteristics of Italian airport companies for the period 2000-2005. This approach is robust to deviations from neoclassical paradigm in terms of cost-minimizing behavior. Duality relationship between the input distance function and the shadow cost function is exploited to derive cost complementarities among outputs. Empirical findings are used to discuss the economic implications connected to changes in airport organization, involving in particular outsourcing of handling operations and development of commercial activities.

Suggested Citation

  • Abrate, Graziano & Erbetta, Fabrizio, 2010. "Efficiency and patterns of service mix in airport companies: An input distance function approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 693-708, September.
  • Handle: RePEc:eee:transe:v:46:y:2010:i:5:p:693-708
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    Citations

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    Cited by:

    1. Mancuso, Paolo, 2014. "An analysis of the competition that impinges on the Milan–Rome intercity passenger transport link," Transport Policy, Elsevier, vol. 32(C), pages 42-52.
    2. Rahmatallah Poudineh and Tooraj Jamasb, 2015. "A New Perspective: Investment and Efficiency under Incentive Regulation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    3. repec:gam:jsusta:v:10:y:2018:i:2:p:400-:d:130171 is not listed on IDEAS
    4. D’Alfonso, Tiziana & Daraio, Cinzia & Nastasi, Alberto, 2015. "Competition and efficiency in the Italian airport system: new insights from a conditional nonparametric frontier analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 20-38.
    5. Gitto, Simone & Mancuso, Paolo, 2010. "Airport efficiency: a DEA two stage analysis of the Italian commercial airports," MPRA Paper 34366, University Library of Munich, Germany, revised 10 Oct 2010.
    6. Liu, Dan, 2016. "Measuring aeronautical service efficiency and commercial service efficiency of East Asia airport companies: An application of Network Data Envelopment Analysis," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 11-22.
    7. De Nicola, Arianna & Gitto, Simone & Mancuso, Paolo, 2013. "Airport quality and productivity changes: A Malmquist index decomposition assessment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 58(C), pages 67-75.
    8. Martín, Juan Carlos & Rodríguez-Déniz, Héctor & Voltes-Dorta, Augusto, 2013. "Determinants of airport cost flexibility in a context of economic recession," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 70-84.
    9. Voltes-Dorta, Augusto & Pagliari, Romano, 2012. "The impact of recession on airports' cost efficiency," Transport Policy, Elsevier, vol. 24(C), pages 211-222.
    10. Tiziana DíAlfonso & Cinzia Daraio & Alberto Nastasi, 2013. "Assesing the Impact of Competition on the Efficiency of Italian Airports," DIAG Technical Reports 2013-01, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    11. Gitto, Simone & Mancuso, Paolo, 2012. "Bootstrapping the Malmquist indexes for Italian airports," International Journal of Production Economics, Elsevier, vol. 135(1), pages 403-411.
    12. Kutlu, Levent & McCarthy, Patrick, 2016. "US airport ownership, efficiency, and heterogeneity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 117-132.
    13. Chao, Ching-Cheng & Yu, Po-Cheng, 2013. "Quantitative evaluation model of air cargo competitiveness and comparative analysis of major Asia-Pacific airports," Transport Policy, Elsevier, vol. 30(C), pages 318-326.
    14. Adler, Nicole & Ülkü, Tolga & Yazhemsky, Ekaterina, 2013. "Small regional airport sustainability: Lessons from benchmarking," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 22-31.
    15. Anna Bottasso & Maurizio Conti, 2010. "An Assessment on the Cost Structure of the UK Airport Industry: Ownership Outcomes and Long Run Cost Economies," Working papers 13, Former Department of Economics and Public Finance "G. Prato", University of Torino.
    16. Assaf, A. George & Josiassen, Alexander & Gillen, David, 2014. "Measuring firm performance: Bayesian estimates with good and bad outputs," Journal of Business Research, Elsevier, vol. 67(6), pages 1249-1256.
    17. Vogel, Hans-Arthur & Graham, Anne, 2013. "Devising airport groupings for financial benchmarking," Journal of Air Transport Management, Elsevier, vol. 30(C), pages 32-38.
    18. Abbruzzo, Antonino & Fasone, Vincenzo & Scuderi, Raffaele, 2016. "Operational and financial performance of Italian airport companies: A dynamic graphical model," Transport Policy, Elsevier, vol. 52(C), pages 231-237.
    19. Rahmatallah Poudineh & Tooraj Jamasb, 2013. "Investment and Efficiency under Incentive Regulation: The Case of the Norwegian Electricity Distribution Networks," Cambridge Working Papers in Economics 1310, Faculty of Economics, University of Cambridge.

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