Non-parametric tests of productive efficiency with errors-in-variables

T.K. Kuosmanen, T. Post, S. Scholtes

Research output: Contribution to journalArticleAcademicpeer-review

11 Citations (Scopus)

Abstract

We develop a non-parametric test of productive efficiency that accounts for errors-in-variables, following the approach of Varian. [1985. Nonparametric analysis of optimizing behavior with measurement error. Journal of Econometrics 30(1/2), 445-458]. The test is based on the general Pareto-Koopmans notion of efficiency, and does not require price data. Statistical inference is based on the sampling distribution of the L¿ norm of errors. The test statistic can be computed using a simple enumeration algorithm. The finite sample properties of the test are analyzed by means of a Monte Carlo simulation using real-world data of large EU commercial banks
Original languageEnglish
Pages (from-to)131-162
JournalJournal of Econometrics
Volume136
Issue number1
DOIs
Publication statusPublished - 2007

Keywords

  • data envelopment analysis
  • frontier models
  • additive-model
  • dea models
  • sensitivity
  • robustness

Fingerprint Dive into the research topics of 'Non-parametric tests of productive efficiency with errors-in-variables'. Together they form a unique fingerprint.

Cite this