Several inputs and outputs are defined and selected for the purposes of computing multilateral output and input indexes associated with the provision of ATM/CNS. TFP scores and TFP growth rates are computed for the European system and for each ANSP using a panel of 29 ANSPs and three years (2001-2002-2003) derived from the ATM Cost-Effectiveness (ACE) data set. A sensitivity analysis of TFP scores suggests that TFP levels are fairly stable and not too sensitives to the various hypotheses considered. Finally, a regression analysis is performed to identify the impact of selected exogenous factors (e.g. airspace density, traffic variability) on TFP scores.
Total factor productivity of European air navigation services providers
Basic concepts and empirical application
This note presents the methodology used to measure the total factor productivity (TFP) of European air navigation service providers (ANSPs).