New posterior distributions for the incidence of inefficiency in DEA scores

Mehmet Güray Ünsal, Daniel Friesner and Robert Rosenman

Communications in Statistics - Theory and Methods, 2021, vol. 50, issue 8, 1774-1780

Abstract: This note derives posterior distributions for the incidence of data envelopment analysis generated inefficiency scores when sampling occurs with replacement or whether the population approaches infinity. The posterior distributions are flexible, tractable, and applicable to a variety of empirical settings. HighlightsData envelopment analysis may generate inaccurate efficiency scores, especially when the sample size is small relative to the number of inputs and outputsWe derive posterior distributions for the incidence of inefficiency in the presence of this inaccuracy.The derived posterior distributions are computationally tractable, especially in situation when the inaccuracy is more pronounced.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:taf:lstaxx:v:50:y:2021:i:8:p:1774-1780

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DOI: 10.1080/03610926.2019.1653920

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