EconPapers    
Economics at your fingertips  
 

Scale and (quasi) scope economies in airport technology. An application to UK airports

Anna Bottasso (), Maurizio Conti () and Davide Vannoni ()

Transportation Research Part A: Policy and Practice, 2019, vol. 125, issue C, 150-164

Abstract: In this study we consider a sample of the largest UK airports in order to estimate, for the first time for this sector, a multiproduct cost function using a flexible technology that nests most of the specifications commonly employed in the empirical literature. Another novelty of this work is that we provide estimates of quasi- scope economies for the airport industry, defined as the cost advantage for a diversified firm of jointly providing a set of outputs/services with respect to the costs of their provision through a set of firms quasi-specialized in a single production. Our main results suggest the existence of quasi-scope economies that tend to decline with the size of the airport. This finding, coupled with the results of a set of cost complementarity tests, suggest that cost savings mainly arise from the joint provision of services for national and international passengers and, to a lesser extent, to the addition of cargo transport activities. In turn, pairs of outputs that include (a proxy of) commercial revenues seem to be characterized by anti-cost complementarities. Finally, global economies of scale seem to be exhausted at about five million passengers.

Keywords: Scope and scale economies; Composite cost function; Airports (search for similar items in EconPapers)
JEL-codes: L93 L23 C3 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0965856418315143
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Scale and (Quasi) Scope Economies in Airport Technology: an Application to UK Airports (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:125:y:2019:i:c:p:150-164

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2020-01-08
Handle: RePEc:eee:transa:v:125:y:2019:i:c:p:150-164