Technical Efficiency and Productivity Growth in an Era of Deregulation: the Case of Airlines
Schweizerische Zeitschrift für Volkswirtschaft und Statistik / Revue Suisse d'Economie politique et de Statistique / Swiss Journal of Economics and Statistics, Volume 130, Issue 4, 1994, Pages 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.