Heterogeneity on the technical efficiency in Japanese airports

Carlos Pestana Barros, Shunsuke Managi, Yuichiro Yoshida

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)523-534
Number of pages12
JournalSingapore Economic Review
Volume56
Issue number4
DOIs
Publication statusPublished - Dec 1 2011

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Technical efficiency
Airports
Production frontier
Latent class model
Business strategy
Unobserved heterogeneity
Stochastic frontier
Finite mixture models
Production efficiency

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

Heterogeneity on the technical efficiency in Japanese airports. / Barros, Carlos Pestana; Managi, Shunsuke; Yoshida, Yuichiro.

In: Singapore Economic Review, Vol. 56, No. 4, 01.12.2011, p. 523-534.

Research output: Contribution to journalArticle

Barros, Carlos Pestana ; Managi, Shunsuke ; Yoshida, Yuichiro. / Heterogeneity on the technical efficiency in Japanese airports. In: Singapore Economic Review. 2011 ; Vol. 56, No. 4. pp. 523-534.
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