ABSTRACT
This chapter overviews the methodology of efficiency measurement as well as its application to the benchmarking and productivity analysis for the aviation sector with a focus on the Asian region. There are three different types of methodologies mainly, namely, data envelopment analysis, stochastic frontier analysis, and index number approach. Recent developments in methodologies such as the inclusion of undesirable outputs and dynamic production process as well as parametric approach of multi-output production transformation function estimation are also covered. Finally, dynamic and network efficiency measurement methodology and its application to the Japanese aviation market is discussed.
