Nonparametric efficiency estimation in stochastic environments

Thierry Post, Laurens Cherchye, Timo Kuosmanen

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

This paper develops a new nonparametric model for efficiency estimation. In contrast to Data Envelopment Analysis (DEA), it does not impose debatable production assumptions like free disposability and convexity, and it does not assume that the data are measured without error. The estimators are asymptotically unbiased and have an asymptotic variance that is comparable to that of stochastic frontier estimators (provided the latter use a correct specification of the functional form for the production relationships). In addition, the estimators can be computed using a simple enumeration algorithm.

Original languageEnglish
Pages (from-to)645-655
Number of pages11
JournalOperations Research
Volume50
Issue number4
Publication statusPublished - 2003
Externally publishedYes

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Disposability
Data envelopment analysis
Specifications
Estimator
Convexity
Nonparametric model
Asymptotic variance
Functional form
Stochastic frontier

ASJC Scopus subject areas

  • Management Science and Operations Research

Cite this

Post, T., Cherchye, L., & Kuosmanen, T. (2003). Nonparametric efficiency estimation in stochastic environments. Operations Research, 50(4), 645-655.

Nonparametric efficiency estimation in stochastic environments. / Post, Thierry; Cherchye, Laurens; Kuosmanen, Timo.

In: Operations Research, Vol. 50, No. 4, 2003, p. 645-655.

Research output: Contribution to journalArticle

Post, T, Cherchye, L & Kuosmanen, T 2003, 'Nonparametric efficiency estimation in stochastic environments' Operations Research, vol. 50, no. 4, pp. 645-655.
Post, Thierry ; Cherchye, Laurens ; Kuosmanen, Timo. / Nonparametric efficiency estimation in stochastic environments. In: Operations Research. 2003 ; Vol. 50, No. 4. pp. 645-655.
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