Modelling Airport Efficiency With Distributions Of The Inefficient Error Term: An Application Of Time Series Data For Aircraft Departure Delay
Keywords:
departure delay, stochastic frontier, airport efficiency, half-normal, exponential.Abstract
The study employs determinants of the aircraft departure delay to estimate airport efficiency. Two main parameters were applied to fit the stochastic frontier model using transcendental logarithmic function where both frontier and inefficiency models were generated. The estimated airport efficiencies over a period of 1827 days applying the half-normal and exponential distributions for the inefficiency error terms were (0.7498; ?=0.1417, n=1827) and (0.8181; ?=0.1224, n=1827) respectively. The correlation coefficient for the efficiency estimates (?=0.9791, n=1827, p<0.05) between the half-normal and exponential distributions showed no significant statistical difference.
Further analysis showed that airport inefficiency was significantly associated with higher number of persons on board, lower visibility level, lower air pressure tendency, higher wind speed and a higher proportion of arrival aircraft delays. The study offers a contribution towards assessing the dynamics for the distribution of inefficient error term to estimate airport efficiency by employing both meteorological and aviation parameters. The study recommends that although either half-normal or exponential distributions could be used; the exponential distribution for the error term was found more suitable when estimating the efficiency score for the airport.
References
R. Wesonga, F. Nabugoomu, and P. Jehopio, "Parameterized framework for the analysis of probabilities of aircraft delay at an airport," Journal of Air Transport Management, vol. 23, pp. 1-4, 2012.
M. Salibian-Barrera and S. Van Aelst, "Robust model selection using fast and robust bootstrap," Computational Statistics & Data Analysis, vol. 52, pp. 5121-5135, 2008.
C.-L. Wu and R. E. Caves, "Aircraft operational costs and turnaround efficiency at airports," Journal of Air Transport Management, vol. 6, pp. 201-208, 2000.
D. H. Good, L.-H. Roller, and R. C. Sickles, "Airline efficiency differences between Europe and the US: implications for the pace of EC integration and domestic regulation," European Journal of Operational Research, vol. 80, pp. 508-518, 1995.
E. Pels, P. Nijkamp, and P. Rietveld, "Access to and competition between airports: a case study for the San Francisco Bay area," Transportation Research Part A: Policy and Practice, vol. 37, pp. 71-83, 2003.
Aigner Dennis, Lovell C. A. Knox, and Schmidt Peter, Formulation and estimation of stochastic frontier production function models: Elsevier, 1977.
W. Meeusen and J. Van den Broeck, "Efficiency estimation from Cobb-Douglas production functions with composed error," International economic review, vol. 18, pp. 435-444, 1977.
Huang CJ and Liu JT, "Estimation of a non-neutral stochastic frontier production function," Journal of Productivity Analysis, vol. 5, pp. 171-180, 1994.
Battese G. E. and Coelli T. J., "A model for technical inefficiency effects in a stochastic frontier production function for panel data " Empirical Economics, vol. 20, pp. 325-332, June, 1995 1995.
C. Ritter and L. Simar, "Pitfalls of Normal-Gamma Stochastic Frontier Models," Journal of Productivity Analysis, vol. 8, pp. 167-182, May 1997 1997.
W. H. Greene, "Simulated Likelihood Estimation of the Normal-Gamma Stochastic Frontier Function," Journal of Productivity Analysis, vol. 19, pp. 179-190, April 2003 2003.
David A. Kodde and Franz C. Palm, "Wald Criteria for Jointly Testing Equality and Inequality Restrictions," Econometrica, vol. 54, pp. 1243-1248, September, 1986 1986.
Coelli T.J, Rao D.S.P, O'Donnell C.J, and Battese G.E, An Introduction to Efficiency and Productivity Analysis, 2nd ed.: Springer, 2005.
D. Clayton and J. Cuzick, "The EM algorithm for Cox's regression model using GLIM," Applied Statistics, pp. 148-156, 1985.
J. H. Mott, "The use of demand correlation in the modeling of air carrier departure delays as first-order autoregressive random processes," Journal of Advanced Transportation, vol. 47, pp. 498-511, 2013.
Downloads
Published
How to Cite
Issue
Section
License
Authors who submit papers with this journal agree to the following terms.
