Group and individual heterogeneity in a stochastic frontier model : Container terminal operators
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
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Pages (from-to) | 517-525 |
Journal / Publication | European Journal of Operational Research |
Volume | 213 |
Issue number | 3 |
Publication status | Published - 16 Sept 2011 |
Link(s)
Abstract
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. © 2011 Elsevier B.V. All rights reserved.
Research Area(s)
- Container terminal operators, Group-specific, Markov processes, Port globalisation, Stochastic processes, Stochastic production frontier
Citation Format(s)
Group and individual heterogeneity in a stochastic frontier model: Container terminal operators. / Yip, Tsz Leung; Sun, Xin Yu; Liu, John J.
In: European Journal of Operational Research, Vol. 213, No. 3, 16.09.2011, p. 517-525.
In: European Journal of Operational Research, Vol. 213, No. 3, 16.09.2011, p. 517-525.
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review