FRENCH REGIONAL PUBLIC AIRPORTS TECHNICAL EFFICIENCY

Abstract

This article reports on a study of the technical efficiency of French regional public airports, with a focus on the role of efficiency in ongoing economic growth. The authors used data from 2000-2008, a period during which France instituted reforms in airport organization. They applied the two-stage procedure of Simar and Wilson to estimate the airports’ technical efficiency during that time. In the first stage, the airports’ relative efficiency is estimated with data envelopment analysis (DEA) to rank the airports. In the second stage, the DEA scores are bootstrapped with a truncated regression. The authors use two different DEA measures: the Charnes, Cooper, and Rhodes (CCR) efficient score model, and the Banker, Charnes, and Cooper (BCC) efficient score model. They found that the technical efficiency of French airports is mixed, with some rising to the top on either scale (Nice Cote d’Azur and Clermont-Ferrand Auvergne). Overall, technical efficiency could be improved and the authors encourage airports to adopt best practices managerial procedures to improve in this area. The authors conclude with a brief discussion of the policy implications of their study.

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