Heterogeneity on the technical efficiency in Japanese airports

Barros, Carlos Pestana, Managi, Shunsuke, & Yoshida, Yuichiro (2011) Heterogeneity on the technical efficiency in Japanese airports. The Singapore Economic Review, 56(4), pp. 523-534.

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This paper evaluates the production activities of Japanese airports by using a finite mixture model that allows controlling for unobserved heterogeneity. In doing so, a stochastic frontier latent class model, which allows the existence of different technologies, is adopted to estimate production frontiers. This procedure not only enables the identification of different groups of Japanese airports but also permits the analysis of their production efficiency. The main result is that there are two groups of Japanese airports, both following completely different "technologies" to obtain passengers and cargo, suggesting that business strategies need to be adapted to the characteristics of the airports. Some managerial implications are developed.

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5 citations in Scopus
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3 citations in Web of Science®

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ID Code: 75445
Item Type: Journal Article
Refereed: Yes
Keywords: airports; Japan; latent class model; Production efficiency
DOI: 10.1142/S0217590811004419
ISSN: 1793-6837
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Deposited On: 25 Aug 2014 00:36
Last Modified: 25 Aug 2014 23:33

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