Scandinavian Working Papers in Economics

Discussion Papers on Economics,
University of Southern Denmark, Department of Economics

No 2/2010: Testing over-representation of observations in subsets of a DEA technology

Mette Asmild (), Jens Leth Hougaard and Ole B. Olesen ()
Additional contact information
Mette Asmild: ORMS Group, Postal: Warwick Business School,Coventry, CV4 7AL, UK
Jens Leth Hougaard: Department of Operations Management, Postal: Copenhagen Business School /Handelshøjskolen, Solbjerg Plads 3, section B 5. floor, DK - 2000 Frederiksberg
Ole B. Olesen: Department of Business and Economics, Postal: University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark

Abstract: This paper proposes a test for whether data are over-represented in a given production zone, i.e. a subset of a production possibility set which has been estimated using the non-parametric Data Envelopment Analysis (DEA) approach. A binomial test is used that relates the number of observations inside such a zone to a discrete probability weighted relative volume of that zone. A Monte Carlo simulation illustrates the performance of the proposed test statistic and suggests good estimation of both facet probabilities and the assumed common inefficiency distribution in a three dimensional input space.

Keywords: Data Envelopment Analysis (DEA); Over-representation; Data density; Binomial test; Convex hull

JEL-codes: C00; C40; C60; C80

27 pages, May 1, 2010

Full text files 

dpbe2_2010.pdf PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Astrid Holm Nielsen ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:sdueko:2010_002This page generated on 2024-09-13 22:17:01.