Metatechnology frontier and convexity: A restatement

Kristiaan Kerstens, Christopher O’donnell and Ignace van de Woestyne ()
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Ignace van de Woestyne: Department of Economics - Hogeschool-Universiteit Brussel
Authors registered in the RePEc Author Service: Christopher John O'Donnell

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Abstract: This article reconsiders the way metafrontiers and associated measures of efficiency are obtained from nonparametric estimates of underlying group-specific frontiers. Both convex and non-convex metasets have been applied, but the large majority of articles applying this popular methodology assume that the metafrontier envelops a convex metaset. We argue that associated estimates of efficiency are potentially unreliable. We develop a refined methodology for nonparametric envelopment of non-convex metasets. We apply our methodology to a secondary data set to illustrate the potential errors associated with the currently established methods. Anticipating our main conclusion, we find that the convexification strategy consisting in assuming a convex metaset generally leads to erroneous results.

Keywords: Data; envelopment; analysis; Free; disposal; hull; Metafrontier (search for similar items in EconPapers)
Date: 2019-06-01
Note: View the original document on HAL open archive server: https://hal.science/hal-02108502
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Citations: View citations in EconPapers (45)

Published in European Journal of Operational Research, 2019, 275 (2), pp.780-792. ⟨10.1016/j.ejor.2018.11.064⟩

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Journal Article: Metatechnology frontier and convexity: A restatement (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02108502

DOI: 10.1016/j.ejor.2018.11.064

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