IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v58y2017icp100-112.html
   My bibliography  Save this article

Efficiency thresholds and cost structure in Senegal airports

Author

Listed:
  • Wanke, Peter
  • Barros, C.P.

Abstract

This paper assesses airport efficiency levels in Senegal under a stochastic environment where the satisficing concept for different performance thresholds is applied. A two-stage satisficing DEA-Support Vector Machine approach is used here to compute the impacts of cost structure on these thresholds. In the first stage, within the ambit of the satisficing DEA model, the probabilities of achieving a minimal performance threshold are computed in a stochastic fashion. In the second stage, Support Vector Machine regression is used to discriminate between high/low efficiency groups within a given performance threshold. This methodology was sufficiently robust to handle small samples. The results reveal that the cost of capital and the cost of labor are the cost structure variables that have the greatest impact on efficiency levels, besides cargo operations.

Suggested Citation

  • Wanke, Peter & Barros, C.P., 2017. "Efficiency thresholds and cost structure in Senegal airports," Journal of Air Transport Management, Elsevier, vol. 58(C), pages 100-112.
    • Handle: RePEc:eee:jaitra:v:58:y:2017:i:c:p:100-112
    DOI: 10.1016/j.jairtraman.2016.10.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699716302745
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2016.10.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Bazargan, Massoud & Vasigh, Bijan, 2003. "Size versus efficiency: a case study of US commercial airports," Journal of Air Transport Management, Elsevier, vol. 9(3), pages 187-193.
    2. Barros, Carlos Pestana & Peypoch, Nicolas, 2009. "An evaluation of European airlines' operational performance," International Journal of Production Economics, Elsevier, vol. 122(2), pages 525-533, December.
    3. Tser-Yieth Chen, 2002. "A comparison of chance-constrained DEA and stochastic frontier analysis: bank efficiency in Taiwan," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(5), pages 492-500, May.
    4. Barros, Carlos Pestana & Wanke, Peter, 2015. "An analysis of African airlines efficiency with two-stage TOPSIS and neural networks," Journal of Air Transport Management, Elsevier, vol. 44, pages 90-102.
    5. A. Charnes & W. W. Cooper, 1959. "Chance-Constrained Programming," Management Science, INFORMS, vol. 6(1), pages 73-79, October.
    6. Sueyoshi, Toshiyuki, 2000. "Stochastic DEA for restructure strategy: an application to a Japanese petroleum company," Omega, Elsevier, vol. 28(4), pages 385-398, August.
    7. Talluri, Srinivas & Narasimhan, Ram & Nair, Anand, 2006. "Vendor performance with supply risk: A chance-constrained DEA approach," International Journal of Production Economics, Elsevier, vol. 100(2), pages 212-222, April.
    8. Rico Merkert & James Pearson, 2015. "A Non-parametric Efficiency Measure Incorporating Perceived Airline Service Levels and Profitability," Journal of Transport Economics and Policy, University of Bath, vol. 49(2), pages 261-275, April.
    9. Adler, Nicole & Berechman, Joseph, 2001. "Measuring airport quality from the airlines' viewpoint: an application of data envelopment analysis," Transport Policy, Elsevier, vol. 8(3), pages 171-181, July.
    10. Agpak, Kursad & Gokcen, Hadi, 2007. "A chance-constrained approach to stochastic line balancing problem," European Journal of Operational Research, Elsevier, vol. 180(3), pages 1098-1115, August.
    11. Wanke, Peter & Barros, Carlos P. & Faria, João R., 2015. "Financial distress drivers in Brazilian banks: A dynamic slacks approach," European Journal of Operational Research, Elsevier, vol. 240(1), pages 258-268.
    12. Edgar Ferreira Damacena & Peter Fernandes Wanke & Henrique Luiz Correa, 2016. "Infrastructure expansion in Brazilian airports: slack analysis using a distance friction minimization approach," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(2), pages 181-198, June.
    13. Diana, Tony, 2010. "Can we explain airport performance? A case study of selected New York airports using a stochastic frontier model," Journal of Air Transport Management, Elsevier, vol. 16(6), pages 310-314.
    14. Wanke, Peter & Azad, M.D. Abul Kalam & Barros, C.P., 2016. "Predicting efficiency in Malaysian Islamic banks: A two-stage TOPSIS and neural networks approach," Research in International Business and Finance, Elsevier, vol. 36(C), pages 485-498.
    15. Barros, Carlos Pestana, 2008. "Technical change and productivity growth in airports: A case study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(5), pages 818-832, June.
    16. Wang, Zhaohua & Feng, Chao, 2015. "Sources of production inefficiency and productivity growth in China: A global data envelopment analysis," Energy Economics, Elsevier, vol. 49(C), pages 380-389.
    17. Wanke, Peter & Barros, C.P. & Nwaogbe, Obioma R., 2016. "Assessing productive efficiency in Nigerian airports using Fuzzy-DEA," Transport Policy, Elsevier, vol. 49(C), pages 9-19.
    18. Yu, Ming-Miin, 2010. "Assessment of airport performance using the SBM-NDEA model," Omega, Elsevier, vol. 38(6), pages 440-452, December.
    19. Wanke, Peter F., 2012. "Efficiency of Brazil's airports: Evidences from bootstrapped DEA and FDH estimates," Journal of Air Transport Management, Elsevier, vol. 23(C), pages 47-53.
    20. Udhayakumar, A. & Charles, V. & Kumar, Mukesh, 2011. "Stochastic simulation based genetic algorithm for chance constrained data envelopment analysis problems," Omega, Elsevier, vol. 39(4), pages 387-397, August.
    21. Carlos Pestana Barros & Shunsuke Managi & Yuichiro Yoshida, 2011. "Heterogeneity On The Technical Efficiency In Japanese Airports," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 56(04), pages 523-534.
    22. Bhattacharya, U.K., 2009. "A chance constraints goal programming model for the advertising planning problem," European Journal of Operational Research, Elsevier, vol. 192(2), pages 382-395, January.
    23. Thore, Sten, 1987. "Chance-constrained activity analysis," European Journal of Operational Research, Elsevier, vol. 30(3), pages 267-269, June.
    24. 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.
    25. Barros, Carlos Pestana, 2014. "Airports and tourism in Mozambique," Tourism Management, Elsevier, vol. 41(C), pages 76-82.
    26. Wang, Wei-Kang & Lu, Wen-Min & Lin, Yi-Ling, 2012. "Does corporate governance play an important role in BHC performance? Evidence from the U.S," Economic Modelling, Elsevier, vol. 29(3), pages 751-760.
    27. Curi, Claudia & Gitto, Simone & Mancuso, Paolo, 2011. "New evidence on the efficiency of Italian airports: A bootstrapped DEA analysis," Socio-Economic Planning Sciences, Elsevier, vol. 45(2), pages 84-93, June.
    28. A. Charnes & W. W. Cooper, 1963. "Deterministic Equivalents for Optimizing and Satisficing under Chance Constraints," Operations Research, INFORMS, vol. 11(1), pages 18-39, February.
    29. Pestana Barros, Carlos & Dieke, Peter U.C., 2007. "Performance evaluation of Italian airports: A data envelopment analysis," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 184-191.
    30. Rajiv D. Banker, 1993. "Maximum Likelihood, Consistency and Data Envelopment Analysis: A Statistical Foundation," Management Science, INFORMS, vol. 39(10), pages 1265-1273, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdollah Hadi-Vencheh & Peter Wanke & Ali Jamshidi, 2020. "What Does Cost Structure Have to Say about Thermal Plant Energy Efficiency? The Case from Angola," Energies, MDPI, vol. 13(9), pages 1-25, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wanke, Peter & Barros, C.P. & Nwaogbe, Obioma R., 2016. "Assessing productive efficiency in Nigerian airports using Fuzzy-DEA," Transport Policy, Elsevier, vol. 49(C), pages 9-19.
    2. Vincent Charles & Ioannis E. Tsolas & Tatiana Gherman, 2018. "Satisficing data envelopment analysis: a Bayesian approach for peer mining in the banking sector," Annals of Operations Research, Springer, vol. 269(1), pages 81-102, October.
    3. Chen, Zhongfei & Matousek, Roman & Wanke, Peter, 2018. "Chinese bank efficiency during the global financial crisis: A combined approach using satisficing DEA and Support Vector Machines☆," The North American Journal of Economics and Finance, Elsevier, vol. 43(C), pages 71-86.
    4. Chen, Zhongfei & Wanke, Peter & Antunes, Jorge Junio Moreira & Zhang, Ning, 2017. "Chinese airline efficiency under CO2 emissions and flight delays: A stochastic network DEA model," Energy Economics, Elsevier, vol. 68(C), pages 89-108.
    5. Edgar Ferreira Damacena & Peter Fernandes Wanke & Henrique Luiz Correa, 2016. "Infrastructure expansion in Brazilian airports: slack analysis using a distance friction minimization approach," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(2), pages 181-198, June.
    6. Udhayakumar, A. & Charles, V. & Kumar, Mukesh, 2011. "Stochastic simulation based genetic algorithm for chance constrained data envelopment analysis problems," Omega, Elsevier, vol. 39(4), pages 387-397, August.
    7. Kaya, Gizem & Aydın, Umut & Karadayı, Melis Almula & Ülengin, Füsun & Ülengin, Burç & İçken, Ayhan, 2022. "Integrated methodology for evaluating the efficiency of airports: A case study in Turkey," Transport Policy, Elsevier, vol. 127(C), pages 31-47.
    8. Mahmoudi, Reza & Emrouznejad, Ali & Shetab-Boushehri, Seyyed-Nader & Hejazi, Seyed Reza, 2020. "The origins, development and future directions of data envelopment analysis approach in transportation systems," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    9. Rashed Khanjani Shiraz & Adel Hatami-Marbini & Ali Emrouznejad & Hirofumi Fukuyama, 2020. "Chance-constrained cost efficiency in data envelopment analysis model with random inputs and outputs," Operational Research, Springer, vol. 20(3), pages 1863-1898, September.
    10. Wanke, Peter & Barros, C.P., 2016. "Efficiency in Latin American airlines: A two-stage approach combining Virtual Frontier Dynamic DEA and Simplex Regression," Journal of Air Transport Management, Elsevier, vol. 54(C), pages 93-103.
    11. Maria Rosa Nieto & Rafael Bernardo Carmona-Benítez, 2021. "An Approach to Measure the Performance and the Efficiency of Future Airport Infrastructure," Mathematics, MDPI, vol. 9(16), pages 1-28, August.
    12. Cláudia Araújo & Carlos Barros & Peter Wanke, 2014. "Efficiency determinants and capacity issues in Brazilian for-profit hospitals," Health Care Management Science, Springer, vol. 17(2), pages 126-138, June.
    13. Carlos Pestana Barros & Silvestre Dumbo & Peter Wanke, 2014. "Efficiency Determinants and Capacity Issues in Angolan Insurance Companies," South African Journal of Economics, Economic Society of South Africa, vol. 82(3), pages 455-467, September.
    14. Güner, Samet & İbrahim Cebeci, Halil, 2021. "Multi-period efficiency analysis of major European and Asian airports under fixed proportion technologies," Transport Policy, Elsevier, vol. 107(C), pages 24-42.
    15. Wu, Desheng (Dash) & Lee, Chi-Guhn, 2010. "Stochastic DEA with ordinal data applied to a multi-attribute pricing problem," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1679-1688, December.
    16. Tiziana DíAlfonso & Cinzia Daraio & Alberto Nastasi, 2013. "Assesing the Impact of Competition on the Efficiency of Italian Airports," DIAG Technical Reports 2013-01, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    17. Saranga, Haritha & Nagpal, Rajiv, 2016. "Drivers of operational efficiency and its impact on market performance in the Indian Airline industry," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 165-176.
    18. 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.
    19. Tavassoli, Mohammad & Faramarzi, Gholam Reza & Farzipoor Saen, Reza, 2014. "Efficiency and effectiveness in airline performance using a SBM-NDEA model in the presence of shared input," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 146-153.
    20. Güner, Samet & Seçkin Codal, Keziban, 2022. "Endogenous and exogenous sources of efficiency in the management of Turkish airports," Utilities Policy, Elsevier, vol. 76(C).

    Corrections

    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:eee:jaitra:v:58:y:2017:i:c:p:100-112. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.