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Efficiency measurement by data envelopment analysis with econometric applications

Jati Kumar Sengupta, Raymond E. Sfeir

Abstract

A method of estimating the production frontier known as data envelopment analysis (DEA) is applied here through a set of tests to examine its robustness. The empirical application shows that in suitable cases the DEA method proves superior to the ordinary regression method as regards robustness and other measures of sensitivity of parameter estimates.

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Key concepts: Data envelopment analysis, Robustness (evolution), Econometrics, Production–possibility frontier, Economics, Envelopment, Frontier, Regression analysis