Skip to main content
Log in

Efficiency and productivity growth comparisons of European and U.S. Air carriers: A first look at the data

  • Published:
Journal of Productivity Analysis Aims and scope Submit manuscript

Abstract

In this paper we carry out technical efficiency and productivity growth comparisons among the four largest European carriers and eight of their American counterparts. The time period of our comparisons is 1976 through 1986. This is a particularly interesting period since it begins just after the informal steps toward deregulation in the United States and ends just prior to the introduction of the first wave of reforms by the Council of Ministers in Europe. We also identify the potential efficiency gains of the European liberalization by comparing efficiency differences between the two carrier groups. The reductions in inefficiency describe the amount that inputs can be decreased without altering output.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Baily, E.E., D.R. Graham, and D.P. Kaplan. (1985).Deregulating the Airlines. MIT Press.

  • Barla, P. and S. Perelman. (1989). “Technical Efficiency in Airlines under Regulated and Deregulated Environments.”Annales de l'Economie Publique Social et Cooperative, 60, No. 1.

  • Caves, D.W., L.R. Christensen, and W.E. Diewert. (1982). “Output, Input and Productivity Using Superlative Index Numbers.”Economic Journal 92, 73–96

    Article  Google Scholar 

  • Caves, D.W., L.R. Christensen, and M.W. Tretheway. (1984). ‘Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ.”Rand Journal of Economics 14, 471–489.

    Article  Google Scholar 

  • de Murias, R. (1990)The Economic Regulation of International Air Transport. Jefferson, NC: McFarland.

    Google Scholar 

  • Cornwell, C., P. Schmidt, and R.C. Sickles (1990). “Production Frontiers with Cross-Sectional and Time-Series Variation in Efficiency Levels.”Journal of Econometrics 46, 185–200.

    Article  Google Scholar 

  • Good, D.H., M.I. Nadiri, and R.C. Sickles. (1991). “The Structure of Production, Technical Change and Efficiency in a Multiproduct Industry: An Application to U.S. Airlines.” National Bureau of Economic Research Working Paper 3939.

  • Good, D.H., and E.L. Rhodes. (1991). “Productive Efficiency, Technological Change and the Competitiveness of U.S. Airlines in the Pacific Rim.”Journal of the Transportation Research Forum 31, 347–358.

    Google Scholar 

  • Hausman, J.A., and W. Taylor. (1981). “Panel Data and Unobservable Individual Effects.”Econometrica 49, 1377–1399.

    Article  Google Scholar 

  • Heston, A., and R. Summers. (1988). “Comparisons of Price and Gross Domestic Product for Several Countries,”Review of Income and Wealth, 34, 1–28.

    Article  Google Scholar 

  • Kaspar, D.M. (1991)Deregulation and Globalization: Liberalizing International Trade in Air Services. American Enterprise Institute. Cambridge MA: Ballinger.

    Google Scholar 

  • Madala, G.S. (1979). “A Note on the Form of the Production Function and Productivity.” InMeasurement and Interpretation of Productivity. National Research Council, Washington, DC: National Academy of Sciences, pp. 309–317.

    Google Scholar 

  • Nishimizu, M., and J.M. Page. (1982). “Total Factor Productivity Growth, Technological Progress and Technical Efficiency Change.”The Economic Journal 92, 920–936.

    Article  Google Scholar 

  • Sickles, R.C. (1987). “Allocative Inefficiency in the U.S. Airlines: A Case for Deregulation.” In Ali Dogramaci (ed.)Studies in Productivity Analysis, Vol. 7. Boston: Kluwer-Nijhoff, pp. 149–162.

    Google Scholar 

  • Sickles, R.C., D., Good, and R. Johnson. (1986). “Allocative Distortions and the Regulatory Transition of the U.S. Airline Industry.”Journal of Econometrics 33, 143–163.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Good, D.H., Nadiri, M.I., Röller, LH. et al. Efficiency and productivity growth comparisons of European and U.S. Air carriers: A first look at the data. J Prod Anal 4, 115–125 (1993). https://doi.org/10.1007/BF01073469

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF01073469

Keywords

Navigation