Statistical inference for the Russell measure of technical efficiency

Oleg Badunenko and Pavlo Mozharovskyi

Journal of the Operational Research Society, 2020, vol. 71, issue 3, 517-527

Abstract: Data envelopment analysis (DEA) has become a popular approach to nonparametric efficiency measurement. The statistical inference using bootstrap methods is readily available for the radial DEA estimator; however it is missing for the Russell measure, the nonradial DEA estimator. We propose a bootstrap based procedure for making statistical inference about the individual Russell measures of technical efficiency. We perform simulations to examine finite sample properties of the proposed estimator. Finally, we present an empirical study using proposed bootstrap procedure.

Date: 2020
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Working Paper: Statistical inference for the Russell measure of technical efficiency (2018)
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DOI: 10.1080/01605682.2019.1599778

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