New posterior distributions for the incidence of inefficiency in DEA scores

Ünsal M. G., Friesner D., Rosenman R.

Communications in Statistics - Theory and Methods, vol.50, no.8, pp.1774-1780, 2021 (SCI-Expanded) identifier

  • Publication Type: Article / Article
  • Volume: 50 Issue: 8
  • Publication Date: 2021
  • Doi Number: 10.1080/03610926.2019.1653920
  • Journal Name: Communications in Statistics - Theory and Methods
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, Business Source Elite, Business Source Premier, CAB Abstracts, Compendex, Veterinary Science Database, zbMATH, Civil Engineering Abstracts
  • Page Numbers: pp.1774-1780
  • Keywords: curse of dimensionality, Data envelopment analysis, incidence of inefficiency, misclassification
  • Uşak University Affiliated: No

Abstract

This note derives posterior distributions for the incidence of data envelopment analysis generated inefficiency scores when sampling occurs with replacement or whether the population approaches infinity. The posterior distributions are flexible, tractable, and applicable to a variety of empirical settings. Highlights Data envelopment analysis may generate inaccurate efficiency scores, especially when the sample size is small relative to the number of inputs and outputs We derive posterior distributions for the incidence of inefficiency in the presence of this inaccuracy. The derived posterior distributions are computationally tractable, especially in situation when the inaccuracy is more pronounced.