A1 Refereed original research article in a scientific journal
Mitigating simultaneity bias in seaport efficiency measurement
Authors: Rødseth, Kenneth Løvold; Kuosmanen, Timo; Holmen, Rasmus Bøgh
Publisher: Elsevier
Publication year: 2025
Journal: Transportation Research Part A: Policy and Practice
Journal name in source: Transportation Research Part A: Policy and Practice
Article number: 104333
Volume: 192
First page : 104333
ISSN: 0965-8564
eISSN: 1879-2375
DOI: https://doi.org/10.1016/j.tra.2024.104333
Web address : https://doi.org/10.1016/j.tra.2024.104333
Self-archived copy’s web address: https://research.utu.fi/converis/portal/detail/Publication/484202311/
Seaport efficiency measurement is one of the most popular topics in maritime economics. Studies within this research area have not paid attention to the well-known simultaneity bias in productivity and efficiency measurement that can lead to inconsistent estimates of best practices. This paper investigates simultaneity in seaport efficiency measurement and proposes a novel strategy to mitigate the bias by exploiting the relationship between port efficiency and choice, another key topic within the maritime literature. A non-parametric framework for joint estimation of production and control functions subject to shape constraints is further developed. Contrary to comparable methods for controlling for simultaneity, the new method does not require multiple steps and rigorous assumptions about the error term to retrieve the port production function. An empirical investigation is provided for the eight largest container ports in Norway to showcase presence and mitigation of simultaneity bias in efficiency analysis of seaports.
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Funding information in the publication:
Rødseth acknowledges with thanks last mile funding from the SIS-project Economic Methods funded by the Research Council of Norway (RCN) under the RCN Grant No. 107957/F40.