Econometric Theory



A NOTE ON THE CONVERGENCE OF NONPARAMETRIC DEA ESTIMATORS FOR PRODUCTION EFFICIENCY SCORES


Alois  Kneip a1c1, Byeong U.  Park a1 and Léopold  Simar a1
a1 Université Catholique de Louvain
a2 Seoul National University
a3 Université Catholique de Louvain

Abstract

Efficiency scores of production units are measured by their distance to an estimated production frontier. Nonparametric data envelopment analysis estimators are based on a finite sample of observed production units, and radial distances are considered. We investigate the consistency and the speed of convergence of these estimated efficiency scores (or of the radial distances) in the very general setup of a multi-output and multi-input case. It is shown that the speed of convergence relies on the smoothness of the unknown frontier and on the number of inputs and outputs. Furthermore, one has to distinguish between the output- and the input-oriented cases.


Correspondence:
c1 Address correspondence to: Alois Kneip, Institute de Statistique, Université Catholique de Louvain, Voie du Roman Pays, 20, Louvain-la-Neuve, Belgium.


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