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Aspects of statistical analysis in DEA-type frontier models

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Abstract

In Grosskopf (1995) and Banker (1995) different approaches and problems of statistical inference in DEA frontier models are presented. This paper focuses on the basic characteristics of DEA models from a statistical point of view. It arose from comments and discussions on both papers above. The framework of DEA models is deterministic (all the observed points lie on the same side of the frontier), nevertheless a stochastic model can be constructed once a data generating process is defined. So statistical analysis may be performed and sampling properties of DEA estimators can be established. However, practical statistical inference (such as test of hypothesis, confidence intervals) still needs artifacts like the bootstrap to be performed. A consistent bootstrap relies also on a clear definition of the data generating proces and on a consistent estimator of it: The approach of Simar and Wilson (1995) is described. Finally, some trails are proposed for introducing stochastic noise in DEA models, in the spirit of the Kneip-Simar (1995) approach.

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  1. Institut de Statistique and CORE, Université Catholique de Louvain, Voie du Roman Pays, 20, B-1348, Louvain-la-Neuve, Belgium

    Léopold Simar

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  1. Léopold Simar
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Simar, L. Aspects of statistical analysis in DEA-type frontier models. J Prod Anal 7, 177–185 (1996). https://doi.org/10.1007/BF00157040

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