TY - JOUR
T1 - Non-parametric tests of productive efficiency with errors-in-variables
AU - Kuosmanen, Timo
AU - Post, Thierry
AU - Scholtes, Stefan
N1 - Funding Information:
Post acknowledges the financial support of Tinbergen Institute, Erasmus Research Institute of Management (ERIM) and Erasmus Center of Financial Research (ECFR). His research program can be found at http://www.few.eur.nl/few/people/gtpost/program.htm .
Funding Information:
Kuosmanen gratefully acknowledges the financial support from the Emil Aaltonen Foundation, Finland, for the research program on ‘Nonparametric Methods in Economics of Production, Natural Resources, and the Environment (NOMEPRE)’. For further details, see the program homepage: http://www.socialsciences.wur.nl/enr/staff/kuosmanen/program1/ .
PY - 2007/1
Y1 - 2007/1
N2 - 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.
AB - 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.
KW - Data envelopment analysis (DEA)
KW - Errors-in-variables
KW - Extreme value theory
KW - Hypothesis testing
KW - Non-parametric production analysis
UR - http://www.scopus.com/inward/record.url?scp=33748611624&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=33748611624&partnerID=8YFLogxK
U2 - 10.1016/j.jeconom.2005.08.003
DO - 10.1016/j.jeconom.2005.08.003
M3 - Article
AN - SCOPUS:33748611624
SN - 0304-4076
VL - 136
SP - 131
EP - 162
JO - Journal of Econometrics
JF - Journal of Econometrics
IS - 1
ER -