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Efficiency Measurement: A Nonparametric Approach

Yves Aragon, Abdelaati Daouia () and Christine Thomas-Agnan

Annals of Economics and Statistics, 2006, issue 82, 217-242

Abstract: The aim of the paper is to present a statistical methodology allowing a meaningful comparison of the production performance of firms without resorting to the usual concept of production frontier. We introduce an efficiency measure based on a nonstandard conditional distribution and propose a two-stage estimation procedure with a smoothing step followed by an isotonization step. We illustrate the approach through a simulated example and an analysis of the performance of Spanish electricity distributors.

Date: 2006
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