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A note on the impact of multiple 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 using multiple positive lineal aggregators of the same inputs instead of the original variables increases the accuracy of the Data Envelopment Analysis (DEA) technical efficiency estimator in data sets beset by dimensionality problems. Aggregation of the inputs achieves more than the mere reduction of 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: 2016-01-25
New Economics Papers: this item is included in nep-ecm and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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