More is better than one: the impact of different numbers of input aggregators in technical efficiency estimation

Ana M. Aldanondo and Valero Casasnovas

MPRA Paper from University Library of Munich, Germany

Abstract: The results of an experiment with simulated data show that combining inputs with different criteria (as cost, material inputs aggregates and other) increases the accuracy of the Data Envelopment Analysis (DEA) technical efficiency estimator in data sets with dimensionality problems. The positive impact of this approach surpasses that of reducing the number of variables, since replacement of the original inputs with an equal number of aggregates improves DEA performance in a wide range of cases.

Keywords: Technical efficiency; Aggregation bias; Monte Carlo; DEA Estimator accuracy (search for similar items in EconPapers)
JEL-codes: C14 C61 D20 (search for similar items in EconPapers)
Date: 2015-04
New Economics Papers: this item is included in nep-ecm and nep-eff
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:64120

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