Testing for differences in technical efficiency among groups within an industry

Phuong Thanh Le, Charles Harvie and Amir Arjomandi

Applied Economics Letters, 2017, vol. 24, issue 3, 159-162

Abstract: This study generalizes the test performed by Simar and Zelenyuk (2007) to examine differences in the technical efficiency among $$L$$L groups within an industry (where $$L \ge 2$$L≥2 ). For this purpose, the $$L$$L groups are divided into pairs and each group is compared with all other $$L - 1$$L−1 groups. The $$L - 1$$L−1 groups can then be classified into three cohorts: those performing better, equally and worse, relative to the benchmark group. For illustration purposes, annual data for Vietnamese banks covering the period 2005‒2012 is used.

Date: 2017
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DOI: 10.1080/13504851.2016.1173172

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