A structural vector autoregressive model of technical efficiency and delays with an application to Chinese airlines

Tsionas, Mike G. and Chen, Zhongfei and Wanke, Peter (2017) A structural vector autoregressive model of technical efficiency and delays with an application to Chinese airlines. Transportation Research Part A: Policy and Practice, 101. pp. 1-10. ISSN 0965-8564

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Abstract

Abstract This study reports on the performance assessment of Chinese airlines from 2006 to 2014 using a stochastic distance function where technical efficiency and a measure of flight delays follow a joint structural autoregressive process. This model is used to investigate whether technical efficiency causes flight punctuality or the other way around. The model, however, yields a non-trivial likelihood function and is not amenable to estimation using least squares or standard maximum likelihood techniques. To estimate the model therefore, we propose and implement maximum simulated likelihood with importance sampling. The results suggest a mutual dependence (feedback) between technical efficiency and delays. Policy implications are derived.

Item Type:
Journal Article
Journal or Publication Title:
Transportation Research Part A: Policy and Practice
Additional Information:
This is the author’s version of a work that was accepted for publication in Transportation Research Part A: Policy and Practice. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Transportation Research Part A: Policy and Practice, 101, 2017 DOI: 10.1016/j.tra.2017.05.003
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/3300/3313
Subjects:
ID Code:
86287
Deposited By:
Deposited On:
13 May 2017 02:35
Refereed?:
Yes
Published?:
Published
Last Modified:
05 Dec 2020 04:08