Flexible Functional Forms and Global Curvature Conditions

We study the effects of ownership forms on airports' cost efficiency by applying stochastic frontier analysis to a panel data of the world's major airports. Our key findings are: (a) Countries considering privatization of airports should transfer majority shares to the private sector; (b) Mixed ownership of airport with a government majority should be avoided in favor of even 100% government owned public firm; (c) U.S. airports operated by port authorities should consider to transfer ownership/management to independent airport authorities; and (d) Privatization of one or more airports in cities with multiple airports would improve the efficiency of all airports.2

show abstract

“…As shown by Diewert and Wales (1987), the Hessian matrix is negative semidefinite if and only if is negative semidefinite.…”

Section: ( ) ( )mentioning

confidence: 99%

Ownership forms matter for airport efficiency: A stochastic frontier investigation of worldwide airports

Oum

Jia

2008

Journal of Urban Economics

221

121

View full text Add to dashboard Cite

show abstract

“…The translog cost function belongs to the class of ‡exible cost functions, which do not restrict the substitution elasticities of input factors, and is therefore preferable to Cobb-Douglas or Constant Elasticity of Substitution functions. 7 We follow the concrete speci…cation proposed by Diewert and Wales (1987) and 6 We apply the rules as of January 2009. 7 See for more details on the choice of cost functions.…”

Section: Labor Demand Model 41 Empirical Model and Estimationmentioning

confidence: 99%

Accounting for labor demand effects in structural labor supply models

Peichl

Siegloch

2012

Labour Economics

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.IZA Discussion Paper No. 5350 November 2010 ABSTRACT Accounting for Labor Demand Effects in Structural Labor Supply Models *When assessing the effects of policy reforms on the labor market, most studies only focus on labor supply. The interaction of supply and demand side is not explicitly modeled, which might lead to biased estimates of potential labor market outcomes. This paper proposes a straightforward method to remedy this shortcoming. We use information on firms' labor demand behavior and feed them into a structural labor supply model, completing the partial analysis of the labor market on the microdata level. We show the performance and relevance of our extension by introducing a pure labor supply side reform, the workfare concept, in Germany and simulating the labor market outcome of the reform. We find that demand effects offset about 25 percent of the positive labor supply effect of the policy reform.JEL Classification: J22, J23, J68

show abstract

“…See Barnett (1983). "See Diewert and Wales (1987). function must be integrable or, more generally, it must lie in a 1-lilbert space.…”

Section: Semi-nonparametric Methodsmentioning

confidence: 99%