Spatial autocorrelation in the European air navigation system

The fragmentation of the European air navigation system has been identified as a cause of inefficiencies and additional costs. One of the problems is that since the different national systems are not independent of their neighbours, there might be issues of spatial autocorrelation, where the efficiency of a system is dependent on the efficiency of others, and thus an inefficient system might negatively impact the economic efficiency of those around it. This article will explore that possibility by applying spatial autocorrelation techniques to data envelopment analysis efficiency results for 2010.