Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports

Tae H. Oum; Jia Yan; Chunyan Yu

doi:10.1016/j.jue.2008.03.001

Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports

Tae H. Oum, Jia Yan, Chunyan Yu

Research output: Contribution to journal › Article › peer-review

Abstract

We study the effects of ownership forms on airports’ cost efficiency by applying stochastic frontier analysis to a panel data of the world’s major airports. Our key findings are: (a) Countries considering privatization of airports should transfer majority shares to the private sector; (b) Mixed ownership of airport with a government majority should be avoided in favor of even 100% government owned public firm; (c) US airports operated by port authorities should consider to transfer ownership/management to independent airport authorities; and (d) Privatization of one or more airports in cities with multiple airports would improve the efficiency of all airports.

Original language	American English
Journal	Journal of Urban Economics
Volume	64
DOIs	https://doi.org/10.1016/j.jue.2008.03.001
State	Published - Sep 2008
Externally published	Yes

Keywords

ownership forms
airports
Translog cost systems
stochastic frontier
Bayesian approach

Disciplines

Business
Transportation

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10.1016/j.jue.2008.03.001License: Unspecified

Cite this

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title = "Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports",

abstract = " We study the effects of ownership forms on airports{\textquoteright} cost efficiency by applying stochastic frontier analysis to a panel data of the world{\textquoteright}s major airports. Our key findings are: (a) Countries considering privatization of airports should transfer majority shares to the private sector; (b) Mixed ownership of airport with a government majority should be avoided in favor of even 100% government owned public firm; (c) US airports operated by port authorities should consider to transfer ownership/management to independent airport authorities; and (d) Privatization of one or more airports in cities with multiple airports would improve the efficiency of all airports.",

keywords = "ownership forms, airports, Translog cost systems, stochastic frontier, Bayesian approach",

author = "Oum, {Tae H.} and Jia Yan and Chunyan Yu",

note = "We study the effects of ownership forms on airports' cost efficiency by applying stochastic frontier analysis to a panel data of the world's major air...",

year = "2008",

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language = "American English",

volume = "64",

journal = "Journal of Urban Economics",

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T1 - Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports

AU - Oum, Tae H.

AU - Yan, Jia

AU - Yu, Chunyan

N1 - We study the effects of ownership forms on airports' cost efficiency by applying stochastic frontier analysis to a panel data of the world's major air...

PY - 2008/9

Y1 - 2008/9

N2 - We study the effects of ownership forms on airports’ cost efficiency by applying stochastic frontier analysis to a panel data of the world’s major airports. Our key findings are: (a) Countries considering privatization of airports should transfer majority shares to the private sector; (b) Mixed ownership of airport with a government majority should be avoided in favor of even 100% government owned public firm; (c) US airports operated by port authorities should consider to transfer ownership/management to independent airport authorities; and (d) Privatization of one or more airports in cities with multiple airports would improve the efficiency of all airports.

AB - We study the effects of ownership forms on airports’ cost efficiency by applying stochastic frontier analysis to a panel data of the world’s major airports. Our key findings are: (a) Countries considering privatization of airports should transfer majority shares to the private sector; (b) Mixed ownership of airport with a government majority should be avoided in favor of even 100% government owned public firm; (c) US airports operated by port authorities should consider to transfer ownership/management to independent airport authorities; and (d) Privatization of one or more airports in cities with multiple airports would improve the efficiency of all airports.

KW - ownership forms

KW - airports

KW - Translog cost systems

KW - stochastic frontier

KW - Bayesian approach

UR - https://www.sciencedirect.com/science/article/pii/S0094119008000223

U2 - 10.1016/j.jue.2008.03.001

DO - 10.1016/j.jue.2008.03.001

M3 - Article

SN - 1095-9068

VL - 64

JO - Journal of Urban Economics

JF - Journal of Urban Economics

ER -

Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports

Abstract

Keywords

Disciplines

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