Efficiency and patterns of service mix in airport companies: An input distance function approach |
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| Authors: | Graziano Abrate Fabrizio Erbetta |
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| Institution: | 1. University of Piemonte Orientale, Faculty of Economics, Via Perrone 18, Novara (NO), Italy;2. HERMES, Higher Education and Research on Mobility and the Economics of Public Services, Collegio Carlo Alberto, Via Real Collegio 30, 10024 Moncalieri (TO), Italy;3. CERIS-CNR, Institute for Economic Research on Firms and Growth, Via Real Collegio 30, 10024 Moncalieri (TO), Italy |
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| Abstract: | In this paper an input distance function approach is used to evaluate efficiency and technological characteristics of Italian airport companies for the period 2000–2005. This approach is robust to deviations from neoclassical paradigm in terms of cost-minimizing behavior. Duality relationship between the input distance function and the shadow cost function is exploited to derive cost complementarities among outputs. Empirical findings are used to discuss the economic implications connected to changes in airport organization, involving in particular outsourcing of handling operations and development of commercial activities. |
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