- Seminars
- An assessment on the cost structure of the UK arport industry: ownership outcomes and long run productivity
An assessment on the cost structure of the UK arport industry: ownership outcomes and long run productivity
Speaker
Anna Bottasso & Maurizio Conti - Universita' di Genova
Date
May 24, 2010 - Time:
12:30
Biblioteca DSE - Palazzina 32, ex caserma Passalacqua
In this paper we analyze the cost structure of the UK airport industry by estimating a variable
cost function for the period 1994.2005. Overall results suggest that the long run average costs
curve is U-shaped: it decreases until passenger traffic reaches approximately five millions, it re-
mains flat over the range between five and fourteen million passengers and afterwards it starts to
increase. Moreover, our findings provide evidence consistent with the existence of some degree of
overcapitalization for the largest regulated airports. Finally, we analyze whether different forms
of ownership entail cost differentials across airports and we find that privately owned airports are
characterized by lower costs with respect to public and mixed ones, although cost differentials
shrank over time as public and mixed airports improved their rate of cost reduction. Main results
are robust to unobserved heterogeneity at the airport or market level and to possible endogeneity
biases. Possible regulatory and policy implications of these results are also discussed.
- Data pubblicazione
- Feb 26, 2010
- Contact person
- Angelo Zago
- PhD School
- Economics
- Department
- Economics
- School
- Economics and Management
ATTACHMENTS
- paper