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Statistical inference for aggregates of Farrell-type efficiencies

Leopold Simar and Valentin Zelenyuk

Journal of Applied Econometrics, 2007, vol. 22, issue 7, 1367-1394

Abstract: In this study, we merge results of two recent directions in efficiency analysis research-aggregation and bootstrap-applied, as an example, to one of the most popular point estimators of individual efficiency: the data envelopment analysis (DEA) estimator. A natural context of the methodology developed here is a study of efficiency of a particular economic system (e.g., an industry) as a whole, or a comparison of efficiencies of distinct groups within such a system (e.g., regulated vs. non-regulated firms or private vs. public firms). Our methodology is justified by the (neoclassical) economic theory and is supported by carefully adapted statistical methods. Copyright © 2007 John Wiley & Sons, Ltd.

Date: 2007
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DOI: 10.1002/jae.991

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