Pavlyuk, Dmitry (2013): Distinguishing Between Spatial Heterogeneity and Inefficiency: Spatial Stochastic Frontier Analysis of European Airports. Published in: Transport and Telecommunication , Vol. 14, No. 1 (January 2013): pp. 29-38.
This is the latest version of this item.
Preview |
PDF
MPRA_paper_65646.pdf Download (119kB) | Preview |
Abstract
A problem of distinguishing between frontier heterogeneity and inefficiency is widely acknowledged in benchmarking. A special type of heterogeneity, based on the spatial structure, can significantly affect performance estimates in the airport industry. In this research we presented a general specification of the spatial stochastic frontier model, which includes spatial lags, spatial autoregressive disturbances and spatial autoregressive inefficiencies. Maximum likelihood estimator has been derived for this model. Applying the suggested model specification to the European airports dataset, we discovered presence of significant spatial heterogeneity, which leads to biased estimates of efficiency, received using classical models.
Item Type: | MPRA Paper |
---|---|
Original Title: | Distinguishing Between Spatial Heterogeneity and Inefficiency: Spatial Stochastic Frontier Analysis of European Airports |
Language: | English |
Keywords: | spatial stochastic frontier, maximum likelihood, efficiency, heterogeneity |
Subjects: | C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L93 - Air Transportation C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C15 - Statistical Simulation Methods: General C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C31 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions ; Social Interaction Models |
Item ID: | 65646 |
Depositing User: | Dmitry Pavlyuk |
Date Deposited: | 17 Jul 2015 15:18 |
Last Modified: | 03 Oct 2019 13:10 |
References: | Krugman, P.R., Fujita, M., Venables, A. (2001). The spatial economy: cities, regions and international trade. Cambridge, Mass.: MIT Press, 384 p. Anselin, L. (2010). Thirty years of spatial econometrics, Papers in Regional Science, Vol. 89, No 1, pp. 3–25. Kumbhakar, S.C., Lovell, C.A.K. (2003). Stochastic frontier analysis. Cambridge: Cambridge Univ. Press, 344 p. Adler, N., Liebert, V. (2011). Competition and regulation (when lacking the former) outrank ownership form in generating airport efficiency, presented at the GAP workshop “Benchmarking of Airports,” Berlin, Germany, p. 27. Scotti, D. (2011). Measuring Airports’ Technical Efficiency: Evidence from Italy, PhD thesis, University of Bergamo, Italy. Pavlyuk, D. (2012). Airport Benchmarking and Spatial Competition: A Critical Review, Transport and Telecommunication, Vol. 13, No 2, pp. 123–137. LeSage, J.P. (1999). Spatial econometrics. Regional Research Institute, West Virginia University, 296 p. Anselin, L. (1988). Spatial econometrics: methods and models. Dordrecht: Kluwer Academic Publishing, 304 p. Kelejian, H.H., Prucha, I.R. (1998). A generalized spatial two-stage least squares procedure for estimating a spatial autoregressive model with autoregressive disturbances, The Journal of Real Estate Finance and Economics, Vol. 17, No 1, pp. 99–121. Druska, V., Horrace, W.C. (2004). Generalized moments estimation for spatial panel data: Indonesian rice farming, American Journal of Agricultural Economics, Vol. 86, No 1, pp. 185–198. Lee, L. (2007). GMM and 2SLS estimation of mixed regressive, spatial autoregressive models, Journal of Econometrics, Vol. 137, No 2, pp. 489–514. Aigner, D., Lovell, C., Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models, Journal of econometrics, Vol. 6, No 1, pp. 21–37. Stevenson, R. (1980). Likelihood Functions for Generalized Stochastic Frontier Functions, Journal of Econometrics, No 13, pp. 57–66. Greene, W.H. (1990). A gamma-distributed stochastic frontier model, Journal of econometrics, Vol. 46, No 1–2, pp. 141–163. Lin, J., Long, Z., Lin, K. (2010). Spatial Panel Stochastic Frontier Model and Technical Efficiency Estimation, Journal of Business Economics, Vol. 223, No 5, pp. 71–78. Oum, T.H., Yu, C., Choo, Y. (2011). ATRS Global Airport Performance Benchmarking Project, The Air Transport Research Society. The Use of Benchmarking in the Airport Reviews (2000). Civil Aviation Authority, London, UK. Doganis, R. (1992). The airport business. London: Routledge, 240 p. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/65646 |
Available Versions of this Item
-
Maximum Likelihood Estimator for Spatial Stochastic Frontier Models. (deposited 23 Dec 2012 13:30)
- Distinguishing Between Spatial Heterogeneity and Inefficiency: Spatial Stochastic Frontier Analysis of European Airports. (deposited 17 Jul 2015 15:18) [Currently Displayed]