The Effect of Institutional Form on Airport Governance Efficiency
Loading...
Authors
Craig, Steven G.
Airola, James
Tipu, Manzur
Subjects
Advisors
Date of Issue
2005-11
Date
Publisher
Language
Abstract
We explore the effect of government institutions on the performance of U.S. airports, e.g.
city operated airports compared to single purpose authorities,. Single purpose authorities have
operating rules specific to airports, so should achieve operational efficiencies. Alternatively, they
also have more autonomy at conducting rent dissipating activities. We estimate a modified
McFadden symmetric generalized cost function for airports to distinguish among technical
efficiency, optimal input use (allocative efficiency), and technical change over time. We find
authorities have a significantly higher level of technical efficiency. Cities, however, appear more
nimble at adopting labor cost saving innovations over time. About 1/3 of the cost saving, however,
appears to be dissipated through higher employee wages, and a slower rate of labor saving technical
change.
Type
Article
Description
Series/Report No
Department
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.