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| Reference : Accounting for Environmental Influences in Stochastic Frontier Models: With Application ... |
| Scientific journals : Article | |||
| Business & economic sciences : Economic systems & public economics | |||
| http://hdl.handle.net/2268/2084 | |||
| Accounting for Environmental Influences in Stochastic Frontier Models: With Application to International Airlines | |
| English | |
Coelli, Tim  [ > > ] | |
| Perelman, Sergio [Université de Liège - ULg > HEC-Ecole de gestion de l'ULg : UER > Economie publique appliquée >] | |
| Romano, Elliot [ > > ] | |
| 1999 | |
| Journal of Productivity Analysis | |
| Springer Science & Business Media B.V. | |
| 11 | |
| 251-273 | |
| International | |
| 0895-562X | |
| [en] Stochastic Frontiers ; Airline Companies ; Technical Efficiency ; Operating Environment ; Net Efficiency | |
| [en] The principal aim of this paper is to measure the efficiency of international airlines. We
obtain measures of technical efficiency from stochastic frontier production functions which have been adjusted to account for environmental influences such as network conditions, geographical factors, etc. We observe that two alternative approaches to this problem have been proposed in the efficiency measurement literature. One assumes that the environmental factors influence the shape of the technology while the other assumes that they directly influence the degree of technical inefficiency. In this paper we compare the results obtained when using these two approaches. The two sets of results provide similar rankings of airlines but suggest differing degrees of technical inefficiency. Both sets of results also suggest that Asian/Oceanic airlines are technically more efficient than European and North American airlines but that the differences are essentially due to more favourable environmental conditions. Nevertheless, it is among Asian companies that the major improvements in managerial efficiency (technical efficiency with environmental factors netted out) took place over the sample period (1977–1990). | |
| Centre de Recherche en Économie Publique et de la Population - C.R.E.P.P | |
| Fonds de la Recherche Scientifique (Communauté française de Belgique) - F.R.S.-FNRS | |
| http://hdl.handle.net/2268/2084 |
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