Passenger facility charge vs. airport improvement program funds: A dynamic network DEA analysis for U.S. airport financing

Passenger Facility Charge (PFC) and the Airport Improvement Program (AIP) are two major sources to finance U.S. airports. This paper develops a novel dynamic network DEA framework to investigate the substitutability between PFC and AIP funds. The authors find that the studied U.S. airports can substitute PFC for 8–35% of the current AIP funds and contribute significantly to the proposed plan of the US congress to cut AIP funding. In addition, the amount of PFC-for-AIP funds substitution negatively correlates with the productive efficiency of airports. The findings send an important message for future policy reforms on U.S. airport financing.

Language

  • English

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Filing Info

  • Accession Number: 01596913
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 22 2016 8:51AM