Robust non-parametric estimation of cost efficiency with an application to banking industry
Galina Besstremyannaya and
Additional contact information
Jaak Simm: University of Leuven
No w0217, Working Papers from New Economic School (NES)
The paper modifies the methodology of Simar and Wilson 2007 [J Econometrics 136] and 1998 [Manage Sci 44] to propose a new algorithm for robust estimation of cost efficiency in data envelopment analysis in terms of bias correction and estimating returns to scale. Simulation analyses with multi-input multi-output Cobb-Douglas production function with correlated outputs, and correlated technical and cost efficiency demonstrate consistency of the new algorithm both in absence and presence of environmental variables. Finally, we offer real data estimates for Japanese banking industry. An R package `rDea', developed for computations, is available from GitHub and CRAN repositary.
Keywords: data envelopment analysis; cost efficiency; bias correction; bootstrap (search for similar items in EconPapers)
JEL-codes: C44 C61 (search for similar items in EconPapers)
Pages: 26 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:abo:neswpt:w0217
Access Statistics for this paper
More papers in Working Papers from New Economic School (NES) Contact information at EDIRC.
Bibliographic data for series maintained by Vladimir Ivanyukhin ().