Statistical inference for the Russell measure of technical efficiency

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Abstract

Data envelopment analysis (DEA) has become a popular approach to nonparametric efficiency measurement. The statistical inference using bootstrap methods is readily available for the radial DEA estimator; however it is missing for the Russell measure, the nonradial DEA estimator. We propose a bootstrap based procedure for making statistical inference about the individual Russell measures of technical efficiency. We perform simulations to examine finite sample properties of the proposed estimator. Finally, we present an empirical study using proposed bootstrap procedure.

Original languageEnglish
Pages (from-to)517-527
Number of pages11
JournalJournal of the Operational Research Society
Volume71
Issue number3
DOIs
Publication statusPublished - 3 Mar 2020
Externally publishedYes

Keywords

  • Nonradial efficiency
  • Russell measure
  • bootstrap
  • data envelopment analysis
  • frontier efficiency models
  • statistical inference

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