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Testing over-representation of observations in subsets of a DEA technology

Mette Asmild (), Jens Hougaard () and Ole B. Olesen
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Mette Asmild: Institute of Food and Resource Economics, University of Copenhagen
Ole B. Olesen: Department of Business and Economics, University of Southern Denmark

No 04_2011, MSAP Working Paper Series from University of Copenhagen, Department of Food and Resource Economics

Abstract: This paper proposes a test for whether data are over-represented in a given production zone, i.e. a subset of a production possibility set which has been estimated using the non-parametric Data Envelopment Analysis (DEA) approach. A binomial test is used that relates the number of observations inside such a zone to a discrete probability weighted relative volume of that zone. A Monte Carlo simulation illustrates the performance of the proposed test statistic and provides good estimation of both facet probabilities and the assumed common inefficiency distribution in a three dimensional input space.

Keywords: Data Envelopment Analysis (DEA); Over-representation; Data density; Binomial test; Convex hull (search for similar items in EconPapers)
Pages: 31 pages
Date: 2011-12
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Related works:
Journal Article: Testing over-representation of observations in subsets of a DEA technology (2013) Downloads
Working Paper: Testing over-representation of observations in subsets of a DEA technology (2010) Downloads
Working Paper: Testing over-representation of observations in subsets of a DEA technology (2010) Downloads
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