IDEAS home Printed from
   My bibliography  Save this article

Accounting for technological differences in modelling the performance of airports: a Bayesian approach


  • A. Assaf


This article uses the innovative Bayesian random coefficient frontier model to account for technological differences in the efficiency measurement of UK airports. In separating cost efficiency from technological differences, the model provides more accurate efficiency measures for airports' policy makers. The input/output data used in testing the model reflect on recent figures from the UK airport industry, and as a result link the efficiency measures with the current industry trends such as the increase in oil price, airport capital investments and market expansion. Results from the model estimation showed that the model fits the data well with all coefficients correctly signed and in line with the theoretical requirements. The average cost efficiency for 2007 was around 73.73%, indicating that UK airports are not operating close to a full efficiency level. This article attributed the sources of inefficiencies to the current industry trends and discussed the importance of heterogeneity in future policy formulations at UK airports.

Suggested Citation

  • A. Assaf, 2011. "Accounting for technological differences in modelling the performance of airports: a Bayesian approach," Applied Economics, Taylor & Francis Journals, vol. 43(18), pages 2267-2275.
  • Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2267-2275
    DOI: 10.1080/00036840903101779

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2267-2275. 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: (Chris Longhurst). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.