A DEA APPROACH TO THE AIRPORT PRODUCTION FUNCTION

Francisco Salazar de la Cruz

43 citations0/0 files storedRivista Internazionale de Economia dei Trasporti

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Abstract

This paper presents a discussion about the measurements of products, inputs, and efficiency relative to the airport industry. A Data Envelopment Analysis (DEA) empirical model is studied. Technical efficiency is applied to the main Spanish Airport Authorities for 1993-1995 period. Evidence shows that these airports, when serving 3.5-12.5 million passengers/year, present constant returns to scale taking into account various production indices--passengers, total returns, and final returns. For traffic over 12.5 million passengers/year, the total average costs increase either linearly or quadratically, dependent upon how production is considered.

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