Presenter: Patrick
McCarthy
Topic: US
Airport Costs and Production Technology: A Multi-Product Translog Cost Function
Analysis
Time: 16:00-17:30,
Apr 25th, 2013
Location: 608
Acedamic Hall
Abstract From
a panel of 50 airports over a 13 year period, this research estimates a
multi-product translog model of airport short run operating costs. Output
includes departures, non-aeronautical operating revenues, and freight shipped
and the quasi-fixed factor of production is the effective number of 10,000’ by
150’ runways. The analysis finds that airports operate under increasing returns
to runway utilization and scale and non-increasing economies of scope, that
input demand for general airport operations are price elastic, and that inputs
are substitutes in production. The study also finds differences in costs and
production characteristics by hub size and airport ownership.
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