Overcoming Data Limitations in Nonparametric Benchmarking: Applying PCA-DEA to Natural Gas Transmission

Maria Nieswand, Astrid Cullmann and Anne Neumann

EconStor Open Access Articles and Book Chapters, 2010, vol. 9, issue 2, No 4

Abstract: We empirically demonstrate a practical approach of efficiency evaluation with limited data availability in some regulated industries. We apply PCA-DEA for radial efficiency measurement to U.S. natural gas transmission companies in 2007. PCA-DEA reduces dimensions of the optimization problem while maintaining most of the variation in the original data. Our results suggest that the methodology reduces the probability of over-estimation of individual firm-specific performance.

Keywords: Efficiency Analysis; PCA-DEA; Network Regulation; Natural Gas Transmission (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Overcoming Data Limitations in Nonparametric Benchmarking: Applying PCA-DEA to Natural Gas Transmission (2010)
Working Paper: Overcoming Data Limitations in Nonparametric Benchmarking: Applying PCA-DEA to Natural Gas Transmission (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:167594

DOI: 10.2202/1446-9022.1209

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