A stochastic cost efficiency analysis of international tourist hotels in Taiwan

International Journal of Hospitality Management

Volumn 29, Issue 1, 2010, Pages 99-107

  Hu, Jin Li ^a   Chiu, Chia Ning ^a   Shieh, Hwai Shuh ^a   Huang, Chia Hui ^a  

^a NATIONAL CHIAO TUNG UNIVERSITY   (Taiwan)

Author keywords

Cost efficiency; International tourist hotel; Panel data; Stochastic frontier; Time varying efficiency

Indexed keywords

EID: 71549138045     PISSN: 02784319     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijhm.2009.06.005     Document Type: Article

References (35)

1. Aigner A., Lovell C.A.K., and Schmidt P. Formulation and estimation of stochastic frontier production function models. Journal of Econometrics 86 (1977) 21-37
2. Anderson R.I., Fish M., Xia Y., and Mixhello F. Measuring efficiency in the hotel industry: a stochastic approach. International Journal of Hospitality Management 18 (1999) 45-57
3. Anderson R.I., Lewis D., and Parker M.E. Another look at the efficiency of corporate travel management departments. Journal of Travel Research 37 (1999) 267-272
4. Anderson R.I., Fok R., and Scott J. Hotel industry efficiency: an advanced linear programming examination. American Business Review 18 (2000) 40-48
5. Barros C.P. A stochastic cost frontier in the Portuguese hotel industry. Tourism Economics 10 (2004) 177-192
6. Battese G.E., and Coelli T.J. A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics 20 (1995) 325-332
7. Bell R.A., and Morey R.C. Increasing the efficiency of corporate travel management through macro benchmarking. Journal of Travel Research 33 (1995) 11-20
8. Chen C.F. Applying the stochastic frontier approach to measure hotel managerial efficiency in Taiwan. Tourism Management 28 (2007) 696-702
9. Coelli T., Prasada R., and Battese G. An Introduction to Efficiency and Productivity Analysis (1998), Kluwer Academics Press, Dordrecht
10. Chiang W., Tsai M., and Wang L.S. A DEA evaluation of Taipei hotels. Annals of Tourism Research 31 (2004) 712-715
11. Earnhart D. Time is money: improved valuation of time and transportation costs. Environmental and Resource Economics 29 (2004) 159-190
12. Färe R., Grosskopf S., and Lovell C.A.K. Production Frontiers (1994), Cambridge University Press, Cambridge
13. Farrell M.J. The measurement of productive efficiency. Journal of the Royal Statistical Society 120 (1957) 253-290
14. In: Fried H.O., Lovell C.A.K., and Schmidt S.S. (Eds). The Measurement of Productive Efficiency: Techniques and Applications (1993), Oxford University Press, New York
15. Hwang S., and Chang T. Using data envelopment analysis to measure hotel managerial efficiency change in Taiwan. Tourism Management 24 (2003) 357-369
16. Jondrow J., Lovell C.A.K., Materov I.S., and Schmidt P. On the estimation of technical inefficiency in the stochastic frontier models. Journal of Econometrics 19 (1982) 233-238
17. Kalirajan K.P. An econometric analysis of yield variability in paddy production. Canadian Journal of Agricultural Economics 29 (1981) 283-294
18. Kumbhakar S.C., and Lovell C.A.K. Stochastic Frontier Analysis (2003), Cambridge University Press, Cambridge
19. Lamminmaki D. Why do hotels outsource? An investigation using asset specificity. International Journal of Contemporary Hospitality Management 17 (2005) 516-528
20. Leibenstein H. Allocative efficiency vs 'X-efficiency'. American Economic Review 56 (1966) 392-414
21. Meeusen W., and van den Broeck J. Efficiency estimation from Cobb-Douglas production function with composed error. International Economic Review 18 (1977) 435-444
22. Morey R.C., and Dittman D.A. Evaluating a hotel GM's performance: a case study in benchmarking. Cornell Hotel and Restaurant Administration Quarterly 36 (1995) 30-35
23. O'Neill J.W. An automated valuation model for hotels. Cornell Hotel and Restaurant Administration Quarterly 45 (2004) 260-268
24. Pitt M.M., and Lee L.F. Measurement and sources of technical inefficiency in the Indonesian weaving industry. Journal of Development Economics 9 (1981) 43-64
25. Reifschneider D., and Stevenson R. Systematic departures from the frontier: a framework for the analysis of firm inefficiency. International Economic Review 32 (1991) 715-723
26. Tsaur S. The operating efficiency of international tourist hotels in Taiwan. Asia Pacific Journal of Tourism Research 6 (2001) 73-81
27. UNWTO, 2008. Website: http://www.unwto.org/index.php.
28. Wang F.C., Shang J.K., and Hung W.T. Productivity and service quality changes of international tourist hotels in Taiwan. Annals of Tourism Research 33 (2006) 571-574
29. Wang F.C., Hung W.T., and Shang J.K. Measuring the cost efficiency of international tourist hotels in Taiwan. Tourism Economics 12 (2006) 65-85
30. Wang F.C., Hung W.T., and Shang J.K. Measuring pure managerial efficiency of international tourist hotels in Taiwan. Service Industries Journal 26 (2006) 59-71
31. Wang Y.H., Lee W.F., and Wong C.C. Productivity and efficiency analysis of international tourist hotels in Taiwan: an application of the stochastic frontier approach. Taiwan Economic Review 35 (2007) 87-114
32. Weng C.C., and Wang K.L. Scale and scope economics of international tourist hotels in Taiwan. Tourism Management 27 (2006) 25-33
33. Williamson O.E. The Economic Institutions of Capitalism (1985), Free Press, New York
34. Williamson O.E. The logic of economic organization. Journal of Law Economics, and Organization 4 (1988) 65-93
35. Williamson O.E. Comparative economic organization: the analysis of discrete structural alternatives. Administrative Science Quarterly 36 (1991) 269-296