Estimation of the Technical Efficiency Measure Within the DEA Method

Anna Pajor; Artur Prędki

doi:https://doi.org/10.59139/ps.2009.03-04.1

Anna Pajor Uniwersytet Ekonomiczny w Krakowie , Artur Prędki Uniwersytet Ekonomiczny w Krakowie Przegląd Statystyczny. Statistical Review, vol. 56, 2009, 3-4, pages: 5-25 Published online: 31 December 2009 DOI https://doi.org/10.59139/ps.2009.03-04.1

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ARTICLE

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ABSTRACT

In the paper we present the proposition of the description of uncertainty related to the technical efficiency measure received using the DEA method. A nonparametric, statistical model functioning within the DEA method is introduced and the DEA estimator of the technical efficiency measure is defined. For a single input – single output variable case, the value of the technical efficiency measure and frontier production function are related. Thus a corresponding DEA frontier estimator for a given point is defined. Next, forms of the asymptotic distributions of the DEA estimators are presented. It allowed us to derive the asymptotic bias and variance of the DEA estimator and to construct asymptotic confidence intervals. In the last part, finite sample performance of the DEA estimator is investigated via a simulation study. We also illustrate the DEA estimation procedure using real data, which come from the Polish Energy Sector.

KEYWORDS

DEA method, technical efficiency, asymptotic distribution, nonparametric Frontier Model

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