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Scale economies and marginal costs in Spanish airports


  • Martín, Juan Carlos
  • Román, Concepción
  • Voltes-Dorta, Augusto


In this paper, we estimate alternative specifications of the Spanish airports' cost function with the objective to provide a comparative analysis on several technological features such as output-specific marginal costs, economies of scale, and the Allen elasticities of substitution. We found evidence of significant and unexhausted scale economies as well as technological development in the Spanish airport industry. The results suggest that traffic consolidation in multi-airport areas such as the Basque Country or Catalonia will result in lower costs for the public operator.

Suggested Citation

  • Martín, Juan Carlos & Román, Concepción & Voltes-Dorta, Augusto, 2011. "Scale economies and marginal costs in Spanish airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(2), pages 238-248, March.
  • Handle: RePEc:eee:transe:v:47:y:2011:i:2:p:238-248

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    Cited by:

    1. Voltes-Dorta, Augusto & Lei, Zheng, 2013. "The impact of airline differentiation on marginal cost pricing at UK airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 72-88.
    2. Germà Bel, 2013. "Local government size and efficiency in capital-intensive services: what evidence is there of economies of scale, density and scope?," Chapters,in: The Challenge of Local Government Size, chapter 6, pages 148-170 Edward Elgar Publishing.
    3. 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.
    4. Hazledine, Tim & Bunker, Rory, 2013. "Airport size and travel time," Journal of Air Transport Management, Elsevier, vol. 32(C), pages 17-23.
    5. Tolga Ülkü & Vahidin Jeleskovic & Jürgen Müller, 2014. "How scale and institutional setting explain the costs of small airports? -An application of spatial regression analysis," MAGKS Papers on Economics 201435, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Voltes-Dorta, Augusto & Pagliari, Romano, 2012. "The impact of recession on airports' cost efficiency," Transport Policy, Elsevier, vol. 24(C), pages 211-222.
    7. Zhang, Baocheng & Wu, Hao & Yang, Xinsheng & Zhai, Wenpeng & Xia, Qingjun & Li, Yafei, 2014. "An estimation of returns to scale of airport airsides under multiple optimal solutions in DEA," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 149-156.
    8. 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.
    9. Vogel, Hans-Arthur & Graham, Anne, 2013. "Devising airport groupings for financial benchmarking," Journal of Air Transport Management, Elsevier, vol. 30(C), pages 32-38.
    10. Mathisen, T.A. & Jørgensen, F. & Solvoll, G., 2014. "Marginal costs pricing of airport operations in Norway," Research in Transportation Economics, Elsevier, vol. 45(C), pages 49-56.


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