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Measuring the technical efficiency of airports in Latin America

Listed author(s):
  • Perelman, Sergio
  • Serebrisky, Tomas

This paper studies the technical efficiency of airports in Latin America. The evolution of productive efficiency in the region has seldom been studied, mainly due to lack of publicly available data. Relying on a unique dataset that was obtained through questionnaires distributed to airport operators, the authors use Data Envelopment Analysis methods to compute an efficient production frontier and compare the technical efficiency of Latin American airports relative to airports around the world. In a second stage, they estimate a truncated regression to study the drivers of observed differences in airport efficiency. According to the results, institutional variables (private/public operation), the socioeconomic environment (level of gross domestic product), and airport characteristics (hub airport, share of commercial revenues) matter in explaining airport productive efficiency. Finally, the authors compute total factor productivity changes for Latin American airports for 1995-2007. The region has implemented a wide variety of private sector participation schemes for the operation of airports since the mid 1990s. The results show that private operators have not had higher rates of total factor productivity change.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5339.

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Date of creation: 01 Jun 2010
Handle: RePEc:wbk:wbrwps:5339
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  1. Gillen, David & Lall, Ashish, 1997. "Developing measures of airport productivity and performance: an application of data envelopment analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 261-273, December.
  2. Oum, Tae H. & Yan, Jia & Yu, Chunyan, 2008. "Ownership forms matter for airport efficiency: A stochastic frontier investigation of worldwide airports," Journal of Urban Economics, Elsevier, vol. 64(2), pages 422-435, September.
  3. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
  4. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
  5. Simar, Leopold & Wilson, Paul W., 1999. "Estimating and bootstrapping Malmquist indices," European Journal of Operational Research, Elsevier, vol. 115(3), pages 459-471, June.
  6. Barros, Carlos Pestana & Dieke, Peter U.C., 2008. "Measuring the economic efficiency of airports: A Simar-Wilson methodology analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(6), pages 1039-1051, November.
  7. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2001. "Relative efficiency of European airports," Transport Policy, Elsevier, vol. 8(3), pages 183-192, July.
  8. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
  9. Malcolm Abbott & Su Wu, 2002. "Total Factor Productivity and Efficiency of Australian Airports," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 244-260.
  10. Barros, Carlos Pestana, 2008. "Technical efficiency of UK airports," Journal of Air Transport Management, Elsevier, vol. 14(4), pages 175-178.
  11. Fung, Michael Ka Yiu & Wan, Ken Kai Hong & Hui, Yer Van & Law, Japhet Sebastian, 2008. "Productivity changes in Chinese airports 1995-2004," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(3), pages 521-542, May.
  12. Fernandes, Elton & Pacheco, R. R., 2002. "Efficient use of airport capacity," Transportation Research Part A: Policy and Practice, Elsevier, vol. 36(3), pages 225-238, March.
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