Testing scale efficiency in DEA models: a bootstrapping approach

Mickael Lothgren and Magnus Tambour

Applied Economics, 1999, vol. 31, issue 10, 1231-1237

Abstract: This paper presents a method for estimation and test of firm-specific scale efficiency using data envelopment analysis (DEA). The use of a simple bootstrap algorithm is proposed to perform firm-specific inference for scale efficiency. An empirical application using Swedish hospital data is provided. It is found that about 40% of the departments were scale efficient according to the original results. However, for about one-third of those departments the hypothesis of scale efficiency could be rejected.

Date: 1999
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DOI: 10.1080/000368499323445

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