IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

General Purpose or Special District Governance? Technical Efficiency versus Rent Dissipation in Airport Finances

Listed author(s):
  • Steven G. Craig


    (Department of Economics, University of Houston, Houston, TX, USA)

  • James Airola

    (Director of Business Development, SunDanzer Refrigeration Inc., CA, USA)

  • Manzur Tipu

    (Department of Economics, North South University, Dhaka, Bangladesh)

This article compares the behavior of special district governments to that of general purpose governments, using as an empirical example the performance of US airports. The authors estimate a modified McFadden symmetric generalized cost function, specified to distinguish technical efficiency and allocative efficiency of airports governed by each institutional form. Using a unique data set on US airports, the authors find that special district governments have technical efficiency that is over 40 percent higher than airports operated by general purpose governments. This advantage, however, is almost entirely dissipated through overpayments to labor and for materials, so that the resulting cost advantage of special district airports is less than 5 percent. The authors interpret these results to suggest that the feedback process between residents and the government institution is centrally important.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by in its journal Public Finance Review.

Volume (Year): 40 (2012)
Issue (Month): 6 (November)
Pages: 712-735

in new window

Handle: RePEc:sae:pubfin:v:40:y:2012:i:6:p:712-735
Contact details of provider:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:40:y:2012:i:6:p:712-735. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.