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An Empirical Investigation on the Efficiency, Capacity Ownership of Italian Airports

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  • Paolo Malighetti
  • Gianmaria Martini
  • Stefano Paleari
  • Renato Redondi

Abstract

In this paper we study the efficiency of Italian airports applying a DEA model to 34 airports. We find that large airports are more efficient than domestic and regional ones, i.e. small airports have spare capacity since they are more distant from the frontier than large airports. The Tobit regression on the estimated DEA scores shows that efficiency is positively related with the hub premium and with privatisation. Hence we suggest that privatisation incentives to invest in large airports (close to saturation) and development plans to improve the small airports may form the benchmarks of Italian short-run air transportation policy.

Suggested Citation

  • Paolo Malighetti & Gianmaria Martini & Stefano Paleari & Renato Redondi, 2007. "An Empirical Investigation on the Efficiency, Capacity Ownership of Italian Airports," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 157-188, January-F.
    • Handle: RePEc:rpo:ripoec:v:97:y:2007:i:1:p:157-188
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L59 - Industrial Organization - - Regulation and Industrial Policy - - - Other
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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