Article ID: | iaor20171940 |
Volume: | 47 |
Issue: | 3 |
Start Page Number: | 223 |
End Page Number: | 246 |
Publication Date: | Jun 2017 |
Journal: | Journal of Productivity Analysis |
Authors: | Managi Shunsuke, Pasurka Carl, Lee Boon, Wilson Clevo, Fujii Hidemichi |
Keywords: | production, performance, simulation |
This study incorporates carbon dioxide emissions in productivity measurement in the airline industry and examines the determinants of productivity change. For this purpose a two‐stage analysis under joint production of good and bad outputs is employed to compare the operational performance of airlines. In the first stage, productivity index are derived using the Luenberger productivity indicator. In the second stage, productivity change scores derived therefrom are regressed using the random‐effects Generalized Least Squares to quantify determinants of productivity change. The paper finds low cost carriers and average number of hours flown per aircraft having a positive impact on productivity under joint production model while demand variable negatively impacts on productivity under market model.