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Technical Efficiency and Productivity Growth in an Era of Deregulation: the Case of Airlines

Veronique Distexhe and Sergio Perelman ()

Swiss Journal of Economics and Statistics (SJES), 1994, vol. 130, issue IV, 669-689

Abstract: In this paper we measure technical efficiency and productivity gains in airline activities. Non-parametric frontiers and Malmquist indices of productivity are estimated for thirty-three airlines observed over the period 1977-1988. We identify three sources of growth: technological progress, efficiency change and route network characteristics. The results bring to light the reasons that pushed several airlines to merge when markets were deregulated.

Date: 1994
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