Measuring the joint impact of governance form and economic regulation on airport efficiency

This paper examines the joint impact that governance structure and economic regulation has on airport efficiency. The previous literature has focused on one or the other of these factors but not both. The empirical investigation uses a semi‐parametric Bayesian distance stochastic frontier model, as well as a Data Envelopment Analysis (DEA) model. Based on a panel of airports in several countries we find that the form of economic regulation is relatively more important than the type of governance in affecting efficiency. The article provides measures of changes in expected efficiency when either or both the governance form and price regulation changes.