A General Methodology for Bootstraping in Nonparametric Frontier Models
(1998) , 33 pages
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- Authors
- Abstract
- The Data Envelopment Analysis method has been extensively used in the literature to provide measures of firms’ technical efficiency. These measures allow rankings of firms by their apparent performance. The underlying frontier model is nonparametric since no particular functional form is assumed for the frontier model. Since the observations result from some data-generating process, the statistical properties of the estimated efficiency measures are essential for their interpretations. In the general multi-output, multi-input framework, the bootstrap seems to offer the only means of inferring these properties (i.e. to estimate the bias and variance, and to construct confidence intervals). This paper proposes a general methodology for bootstrapping in frontier models, extending the more restrictive method proposed in Simar and Wilson (1998a) by allowing for heterogeneity in the structure of efficiency. A numerical illustration with real data is provided to illustrate the methodology.
- Affiliations
University of Texas Department of Economics
Citations
Simar, L., & Wilson, P. (1998). A General Methodology for Bootstraping in Nonparametric Frontier Models (STAT Discussion Papers 9811). https://hdl.handle.net/2078.5/35806