An approximation to the productive efficiency of the Spanish airports network through a deterministic cost frontier

Abstract

This paper attempts to analyse the productive efficiency of the airport industry. The analysis was carried out using the neoclassical approach of dual cost function. A translog joint cost function was used. Its flexibility enabled LIS to directly model the cost structure without imposing arbitrary a priori restrictions on the structure of production. Using the joint cost function, we ascertained the productive efficiency of the Spanish airport network. Through this work, We found evidence of possible inefficiencies related to the airport's size. This aspect has some significant repercussions in the investment programme (airport planning) and its cost structure.