Spatial dependence and competition between U.S. airports

Fecri Karanki and Siew Hoon Lim

Journal of Air Transport Management, 2023, vol. 110, issue C

Abstract: U.S. commercial airports are public infrastructure owned and operated by government authorities. If so, do public commercial airports compete with each other? In this study, we investigated airport competition by applying the data of 59 U.S. hub airports from 2009 to 2019 in a Cliff-Ord typed spatial model. The model includes two modules: the first module captures the impact of neighboring airports on the airport's output with a spatial lag dependent variable, while the second module considers the bias resulting from spatial autoregressive error term. The results suggest that the airports' outputs are spatially and negatively dependent; namely, an increase in the outputs of neighboring airports leads to a decrease in the output of an airport. This indicates the existence of airport competition. In addition, we found that the outputs of airports governed by city and state are greater than those of ones governed by the port/airport authority after controlling for all other factors.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:110:y:2023:i:c:s0969699722001740

DOI: 10.1016/j.jairtraman.2022.102355

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