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A multi-output cost function for port terminals : some guidelines for regulation

  • Lourdes Trujillo
  • Sergio Jara-Diaz
  • Beatriz Tovar

Cargo handling in ports is a multioutput activity, as freight can arrive in many forms such as containers, bulk, rolling stock, or noncontainerized general cargo. In this paper Tovar, Jara-D?, and Trujillo analyze the operation of port terminals through the estimation of a multioutput cost model that uses monthly data on three firms located at the Las Palmas port in Spain. This permits the calculation of product-specific marginal costs, economies of scale (general and by firm), and economies of scope, which are key tools to help the regulators in their task.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3151.

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Date of creation: 01 Oct 2003
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Handle: RePEc:wbk:wbrwps:3151
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