WHEN BIAS KILLS THE VARIANCE: CENTRAL LIMIT THEOREMS FOR DEA AND FDH EFFICIENCY SCORES

When Bias Kills the Variance: Central Limit Theorems for DEA and FDH Efficiency Scores

Data envelopment analysis (DEA) and free disposal hull (FDH) estimators are widely used to estimate efficiencies of production units. In applications, both efficiency scores for individual units as well as average efficiency scores are typically reported. While several bootstrap methods have been developed for making inference about the efficiencies of individual units, until now no methods hav...

When Bias Kills the Variance: Central Limit Theorems for DEA and FDH Efficiency Scores: Technical Appendix

Randomizing DEA Efficiency Scores with Beta Distribution

Since the original publication on Data Envelopment Analysis (DEA) by Charnes et al. (1978), a considerable amount of research publications have appeared in decision science literature, a significant portion of which focusing on efficiency and productivity in the banking sector. A comprehensive survey of bank efficiency studies could be found in Fethi and Pasiouras (2010). They have examined ban...

Statistical Tests Based on Dea Efficiency Scores

This chapter is written for analysts and researchers who may use Data Envelopment Analysis (DEA) to statistically evaluate hypotheses about characteristics of production correspondences and factors affecting productivity. Contrary to some characterizations, it is shown that DEA is a full-fledged statistical methodology, based on the characterization of DMU efficiency as a stochastic variable. T...

Measuring LocaL governMent technicaL (in)efficiency an application and comparison of fDh, Dea, and econometric approaches

Economic efficiency—understood in terms of jurisdictions providing a maximum amount of output for a given level of inputs—is one potential means to evaluate public policies. Various approaches, however, co-exist to measure the (technical) efficiency of organizations. Given that these rely on different underlying assumptions, it is important to assess whether, and to what extent, the approach ta...