Technical Efficiency and Agglomeration Economies in the Hotel Industry: Evidence from Canary Islands.

Autor: Martín-Rivero, Raquel, Ledesma-Rodríguez, Francisco José, Lorenzo-Alegría, Rosa María
Zdroj: Applied Spatial Analysis & Policy; Dec2021, Vol. 14 Issue 4, p777-793, 17p
Abstrakt: This paper aims to estimate the level of technical inefficiency in the hotel sector of a major tourist destination of Europe, the Canary Islands, exploring the relevance of agglomeration processes in efficiency levels. To do this, a complete dataset of the hotel supply for the period 2010–2016 is used. A translog production frontier and an inefficiency function are estimated in a single-stage sampling procedure. Results suggest an aggregate technical inefficiency of approximately 32%. Furthermore, technical efficiency seems to be decreasing with market concentration and congestion, and increasing in agglomeration economies. [ABSTRACT FROM AUTHOR]
Databáze: Complementary Index
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