US airport ownership, efficiency, and heterogeneity

Levent Kutlu and Pat McCarthy

Transportation Research Part E: Logistics and Transportation Review, 2016, vol. 89, issue C, 117-132

Abstract: All US commercial airports are in the public sector yet not all have the same ownership type. For medium and large hub US airports we use stochastic frontier analysis to analyze the efficiency differences for alternative airport ownership types. We find that while form of ownership may matter for cost efficiency, in general its effect is relatively small. Yet type of public sector ownership does have cost efficiency implications in certain environments. Further, when heterogeneity is not controlled, the results change substantially so that type of ownership matters much more which demonstrates the importance of controlling for cross section heterogeneity.

Keywords: Cost efficiency; Stochastic frontier; Heterogeneity; Airport governance; Airport ownership; Panel data (search for similar items in EconPapers)
JEL-codes: C33 L93 R41 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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DOI: 10.1016/j.tre.2016.03.003

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