Advertisement

Efficiency Stochastic Frontiers: a Panel Data Analysis for Spanish Airports (1992–1994)

  • Pablo Coto-Millán
  • Gema Carrera-Gómez
  • Juan Castanedo-Galán
  • Miguel A. Pesquera
  • Vicente Inglada
  • Rubén Sainz
  • Ramón Núñez-Sánchez
Part of the Contributions to Economics book series (CE)

8.5 Conclusions

The most efficient airports are the ones of Madrid, Barcelona, Palma de Mallorca, Malaga, Gran Canaria, Tenerife South, Alicante, Ibiza, Fuerteventura, Menorca and Bilbao.

These airports have the highest traffic of passengers (between 3 million and 19 million).

Airports of medium efficiency are the ones of Tenerife North, Valencia, Seville, Santiago, Almeria, Las Palmas, Asturias, Vigo, Reus, Jerez de la Frontera, Girona and La Coruña. These airports have medium volumes of traffic (between 400 thousand and 3 million).

The airports of Granada, Pamplona, Melilla, San Sebastian, Santander, Zaragoza, Valladolid, Murcia and Hierro have a low efficiency, with volumes of traffic of up to 400 thousand passengers. The airports of Madrid and Barcelona present constant returns to scale because they have extinguished their scale economies as they have achieved their optimum size.

However, the airports of Malaga and Alicante present decreasing returns. A possible reason for this is the strong stationarity in traffics, which requires that airports are big in order to answer to the peaks in demand, while traffics are low the rest of the year.

The remaining airports present increasing returns, as expected. These airports will extinguish their returns to scale economies as they increase the traffic (we have estimated an average increase around 5% during the last 10 years), thus achieving the optimum size.

Keywords

Stochastic Frontier Panel Data Analysis Cost Frontier Intermediate Consumption Total Variable Cost 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Aigner DJ, Chu SF (1968) On estimating the industry production function. American Economic Review 58: 226–239.Google Scholar
  2. Aigner DJ, Lovell CK, Schmidt P (1997) Formulation and estimation of stochastic frontier production function models. Journal of Econometrics 6: 21–37.CrossRefMathSciNetGoogle Scholar
  3. Memorias Anuales de los Aeropuertos Españoles (1992–1994). Dirección General de Aeropuertos, AENA.Google Scholar
  4. Schmidt P, Sickles RC (1984) Production frontiers and panel data. Journal of Business and Economic Statistics 2: 367–374.CrossRefGoogle Scholar

Copyright information

© Physica-Verlag Heidelberg 2007

Authors and Affiliations

  • Pablo Coto-Millán
    • 1
  • Gema Carrera-Gómez
    • 1
  • Juan Castanedo-Galán
    • 2
  • Miguel A. Pesquera
    • 2
  • Vicente Inglada
    • 3
  • Rubén Sainz
    • 1
  • Ramón Núñez-Sánchez
    • 1
  1. 1.Department of EconomicsUniversity of CantabriaSpain
  2. 2.Department of TransportsUniversity of CantabriaSpain
  3. 3.Department of EconomicsUniversity Carlos III of MadridSpain

Personalised recommendations