An econometric study of the effects of airport privatization on airfares in Brazil

Igor R.S. Brito, Alessandro V.M. Oliveira and Martin E. Dresner

Transport Policy, 2021, vol. 114, issue C, 338-349

Abstract: This paper develops empirical models to test the impact of airport privatization on airline fares. We employ a difference-in-difference approach combined with an endogenous switching regression model to account for the selection of airports to be privatized. The results suggest that prices for tickets on routes with at least one privatized airport at an endpoint are about 3–3.5% higher than on routes between two publicly managed airports. By testing moderating effects, we find evidence that market dominance enforces the privatization impact on airfares. The main conclusions are consistent using various control group classifications.

Keywords: Air transport; Privatization; Airports; Airlines; Econometrics (search for similar items in EconPapers)
JEL-codes: D22 L11 L93 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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DOI: 10.1016/j.tranpol.2021.10.015

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