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HETEROGENEITY ON THE TECHNICAL EFFICIENCY IN JAPANESE AIRPORTS

Carlos Barros, Shunsuke Managi and Yuichiro Yoshida

The Singapore Economic Review (SER), 2011, vol. 56, issue 04, 523-534

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.

Keywords: Production efficiency; latent class model; Japan; airports (search for similar items in EconPapers)
Date: 2011
References: View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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DOI: 10.1142/S0217590811004419

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