The technical efficiency of container ports: Comparing data envelopment analysis and stochastic frontier analysis

The Educational Efficiency Evaluation Framework: By Using DEA Model and CA Method

“…For example, Cullinane [4] evaluated the relative efficiency of 26 container ports using DEA from two perspectives-deterministically (using an output-oriented DEA model under both VRS and CRS) and stochastically (based on a log-linear Cobb-Douglas production function and under the error assumption of half-normal, truncated normal, and gamma distributions). Cullinane et al found that while there were differences in the efficiency ranks of the two methods, those rankings were highly correlated.…”

Group and individual heterogeneity in a stochastic frontier model: Container terminal operators

“…In contrast, SFA is an econometric method accounting for random shocks and measurement errors, and was first proposed by Aigner et al (1977) and Meeusen and van den Broeck (1977). Cullinane et al (2006) compared the results from DEA and SFA on port efficiencies and found high correlations between the results from the two approaches. In port literature, Hung, Lu, and Wang (2010) introduced scale efficiency into DEA analysis, and Sharma and Yu (2010) studied container terminals using the DEA model.…”

Review and Systematization of Efficiency Measurement Methods Used in the Transport Sector

“…The authors of the various papers have conducted correlation analyses the results of which are revealing: Cullinane et al [15] carried out a DEA and an SFA examination simultaneously and found a high degree of correlation between them. Coelli and Perelman [14] also investigated the parametric and the DEA method in parallel (the former also with LP and also with COLS estimation methods), and found that the three procedures yielded reliably similar results.…”

“…In case of a deterministic function, the corrected ordinary least squares method (COLS) or linear programming (LP) can be used. If the SFA method is selected, these two can still be applied (see [14]), or the maximum likelihood estimation (MLE) (see [15]) or the Markov Chain Monte Carlo simulation (MCMC) (see [16]) can also be employed.…”

“…Oum et al [16] use SFA with a translog function to evaluate the efficiency of 109 worldwide airports, Diana [13] utilizes SFA with a log-linear Cobb-Douglas form for the examination of airport performance, Tsionas [17] combines SFA with a non-parametric method to investigate the efficiency of 10 US airlines over a 14 year long period, Cullinane et al [15] look into the efficiency of 28 internationally very important container ports with an SFA method using a log-linear Cobb-Dougles production function, Coelli and Perelman [14] estimate the efficiency of 17 European railway companies with this method, employing a translog function and applying the LP and the COLS technique and Tovar and Martín-Cejas [9] use SFA as the basic method to calculate the efficiency rankings to be used in Malmquist productivity indexes in order to evaluate the efficiency of Spanish airports.…”