Measuring productivity and efficiency: a Kalman filter approach
In the Kalman filter setting, one can model the inefficiency term of the standard stochastic frontier composed error as an unobserved state. In this study a panel data version of the local level model is used for estimating time-varying efficiencies of firms. We apply the Kalman filter to estimate a...
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| Format: | Article |
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Springer
2016
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| Online Access: | https://eprints.nottingham.ac.uk/41338/ |
| _version_ | 1848796252412575744 |
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| author | Duygun, Meryem Kutlu, Levent Sickles, Robin |
| author_facet | Duygun, Meryem Kutlu, Levent Sickles, Robin |
| author_sort | Duygun, Meryem |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | In the Kalman filter setting, one can model the inefficiency term of the standard stochastic frontier composed error as an unobserved state. In this study a panel data version of the local level model is used for estimating time-varying efficiencies of firms. We apply the Kalman filter to estimate average efficiencies of U.S. airlines and find that the technical efficiency of these carriers did not improve during the period 1999-2009. During this period the industry incurred substantial losses, and the efficiency gains from reorganized networks, code-sharing arrangements, and other best business practices apparently had already been realized. |
| first_indexed | 2025-11-14T19:45:02Z |
| format | Article |
| id | nottingham-41338 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:45:02Z |
| publishDate | 2016 |
| publisher | Springer |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-413382020-05-04T18:26:55Z https://eprints.nottingham.ac.uk/41338/ Measuring productivity and efficiency: a Kalman filter approach Duygun, Meryem Kutlu, Levent Sickles, Robin In the Kalman filter setting, one can model the inefficiency term of the standard stochastic frontier composed error as an unobserved state. In this study a panel data version of the local level model is used for estimating time-varying efficiencies of firms. We apply the Kalman filter to estimate average efficiencies of U.S. airlines and find that the technical efficiency of these carriers did not improve during the period 1999-2009. During this period the industry incurred substantial losses, and the efficiency gains from reorganized networks, code-sharing arrangements, and other best business practices apparently had already been realized. Springer 2016-12-08 Article PeerReviewed Duygun, Meryem, Kutlu, Levent and Sickles, Robin (2016) Measuring productivity and efficiency: a Kalman filter approach. Journal of Productivity Analysis, 46 (2). pp. 155-167. ISSN 1573-0441 Kalman filter Panel data Airline productivity https://link.springer.com/article/10.1007%2Fs11123-016-0477-z doi:10.1007/s11123-016-0477-z doi:10.1007/s11123-016-0477-z |
| spellingShingle | Kalman filter Panel data Airline productivity Duygun, Meryem Kutlu, Levent Sickles, Robin Measuring productivity and efficiency: a Kalman filter approach |
| title | Measuring productivity and efficiency: a Kalman
filter approach |
| title_full | Measuring productivity and efficiency: a Kalman
filter approach |
| title_fullStr | Measuring productivity and efficiency: a Kalman
filter approach |
| title_full_unstemmed | Measuring productivity and efficiency: a Kalman
filter approach |
| title_short | Measuring productivity and efficiency: a Kalman
filter approach |
| title_sort | measuring productivity and efficiency: a kalman
filter approach |
| topic | Kalman filter Panel data Airline productivity |
| url | https://eprints.nottingham.ac.uk/41338/ https://eprints.nottingham.ac.uk/41338/ https://eprints.nottingham.ac.uk/41338/ |