Group and individual heterogeneity in a stochastic frontier model: Container terminal operators
Container ports are a major component of international trade and the global supply chain. Hence, the improvement of port efficiency can have a significant impact on the wider maritime economy. This paper deconstructs a representation in the existing literature that neglects the heterogeneity of individual and group-specific terminal operators. In its place, we present a hierarchical model to make a connection between efficiency and terminal operator group characteristics. The paper develops a stochastic frontier model that controls not only individual heterogeneity but also group-specific variations. The model decomposes the total stochastic derivation from the frontier into inefficiency, individual heterogeneity, group-specific variations, and noise components, with the estimation being performed using Markov chain Monte Carlo simulations. The validity of the model is tested with a panel of container terminal operator data from 1997-2004. Our findings show that terminal operator groups are important in promoting terminal efficiency at the global level, and that the operators with stevedore backgrounds show a higher efficiency than carriers.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Caves,Richard E., 2007. "Multinational Enterprise and Economic Analysis," Cambridge Books, Cambridge University Press, number 9780521677530, October.
- Oum, Tae H. & Yan, Jia & Yu, Chunyan, 2008.
"Ownership forms matter for airport efficiency: A stochastic frontier investigation of worldwide airports,"
Journal of Urban Economics,
Elsevier, vol. 64(2), pages 422-435, September.
- Oum, Tae H. & Yan, Jia & Yu, Chunyan, 2009. "Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports," 50th Annual Transportation Research Forum, Portland, Oregon, March 16-18, 2009 207604, Transportation Research Forum.
- Tongzon, Jose, 2001. "Efficiency measurement of selected Australian and other international ports using data envelopment analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(2), pages 107-122, February.
- Sharma, Mithun J. & Yu, Song Jin, 2010. "Benchmark optimization and attribute identification for improvement of container terminals," European Journal of Operational Research, Elsevier, vol. 201(2), pages 568-580, March.
- Lee, Young Hoon, 2010. "Group-specific stochastic production frontier models with parametric specifications," European Journal of Operational Research, Elsevier, vol. 200(2), pages 508-517, January.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Zheng, Jinghai & Liu, Xiaoxuan & Bigsten, Arne, 1998. "Ownership Structure and Determinants of Technical Efficiency: An Application of Data Envelopment Analysis to Chinese Enterprises (1986-1990)," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 465-484, September.
- Caves,Richard E., 2007. "Multinational Enterprise and Economic Analysis," Cambridge Books, Cambridge University Press, number 9780521860130, October.
- Estache, Antonio & Gonzalez, Marianela & Trujillo, Lourdes, 2002.
"Efficiency Gains from Port Reform and the Potential for Yardstick Competition: Lessons from Mexico,"
Elsevier, vol. 30(4), pages 545-560, April.
- Antonio Estache & Marianela Gonzalez & Lourdes Trujillo, 2002. "Efficiency Gains from Port Reform and the Potential for Yardstick Competition: Lessons from Mexico," ULB Institutional Repository 2013/43983, ULB -- Universite Libre de Bruxelles.
- Antonio Estache & Marianela Gonzalez & Lourdes Trujillo, 2002. "Efficiency gains from port reform and the potential for Yardstick competition: lessons from Mexico?," ULB Institutional Repository 2013/13376, ULB -- Universite Libre de Bruxelles.
- Fenn, Paul & Vencappa, Dev & Diacon, Stephen & Klumpes, Paul & O'Brien, Chris, 2008. "Market structure and the efficiency of European insurance companies: A stochastic frontier analysis," Journal of Banking & Finance, Elsevier, vol. 32(1), pages 86-100, January.
- Kim, Moshe & Sachish, Arie, 1986. "The Structure of Production, Technical Change and Productivity in a Port," Journal of Industrial Economics, Wiley Blackwell, vol. 35(2), pages 209-23, December.
- María Manuela González & Lourdes Trujillo, 2009. "Efficiency Measurement in the Port Industry: A Survey of the Empirical Evidence," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 43(2), pages 157-192, May.
- Yan, Jia & Sun, Xinyu & Liu, John J., 2009. "Assessing container operator efficiency with heterogeneous and time-varying production frontiers," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 172-185, January.
- Theo Notteboom & Chris Coeck & Julien Van Den Broeck, 2000. "Measuring and Explaining the Relative Efficiency of Container Terminals by Means of Bayesian Stochastic Frontier Models," Maritime Economics and Logistics, Palgrave Macmillan, vol. 2(2), pages 83-106, June.
- Rajiv D. Banker & Richard C. Morey, 1986. "The Use of Categorical Variables in Data Envelopment Analysis," Management Science, INFORMS, vol. 32(12), pages 1613-1627, December.
- Sergio Jara-Díaz & Eduardo Martínez-Budría & Cristiín Cortés & Leonardo Basso, 2002. "A multioutput cost function for the services of Spanish ports' infrastructure," Transportation, Springer, vol. 29(4), pages 419-437, November.
- C. Edward Chang & Iftekhar Hasan & William Hunter, 1998. "Efficiency of multinational banks: an empirical investigation," Applied Financial Economics, Taylor & Francis Journals, vol. 8(6), pages 689-696.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Cullinane, Kevin & Wang, Teng-Fei & Song, Dong-Wook & Ji, Ping, 2006. "The technical efficiency of container ports: Comparing data envelopment analysis and stochastic frontier analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(4), pages 354-374, May.
- Jui-Kou Shang & Wei-Ting Hung & Chang-Fang Lo & Fei-Ching Wang, 2008. "Ecommerce and hotel performance: three-stage DEA analysis," The Service Industries Journal, Taylor & Francis Journals, vol. 28(4), pages 529-540, May.
- Hung, Shiu-Wan & Lu, Wen-Min & Wang, Tung-Pao, 2010. "Benchmarking the operating efficiency of Asia container ports," European Journal of Operational Research, Elsevier, vol. 203(3), pages 706-713, June.
When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:213:y:2011:i:3:p:517-525. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.