Asymptotic distribution of conical-hull estimators of directional edges

DOI10.1214/09-AOS746MaRDI QIDQ973868zbMATHOpenAlexFDO

Authors Byeong U. Park, Seok-Oh Jeong, Léopold Simar

Publication date 26 May 2010

Published in The Annals of Statistics (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/1010.0312

zbMATH Keywords

asymptotic distributionefficiencydata envelopment analysisDEAconstant returns-to-scaleCRSconical-hull

Mathematics Subject Classification ID

Nonparametric estimation (62G05) Asymptotic properties of nonparametric inference (62G20) Applications of statistics in engineering and industry; control charts (62P30) Asymptotic distribution theory in statistics (62E20)

Abstract: Nonparametric data envelopment analysis (DEA) estimators have been widely applied in analysis of productive efficiency. Typically they are defined in terms of convex-hulls of the observed combinations of $mathrminputsimesmathrmoutputs$ in a sample of enterprises. The shape of the convex-hull relies on a hypothesis on the shape of the technology, defined as the boundary of the set of technically attainable points in the $mathrminputsimesmathrmoutputs$ space. So far, only the statistical properties of the smallest convex polyhedron enveloping the data points has been considered which corresponds to a situation where the technology presents variable returns-to-scale (VRS). This paper analyzes the case where the most common constant returns-to-scale (CRS) hypothesis is assumed. Here the DEA is defined as the smallest conical-hull with vertex at the origin enveloping the cloud of observed points. In this paper we determine the asymptotic properties of this estimator, showing that the rate of convergence is better than for the VRS estimator. We derive also its asymptotic sampling distribution with a practical way to simulate it. This allows to define a bias-corrected estimator and to build confidence intervals for the frontier. We compare in a simulated example the bias-corrected estimator with the original conical-hull estimator and show its superiority in terms of median squared error.

Recommendations

• ASYMPTOTICS AND CONSISTENT BOOTSTRAPS FOR DEA ESTIMATORS IN NONPARAMETRIC FRONTIER MODELS
• Technical, allocative and overall efficiency: estimation and inference
• Statistical inference for DEA estimators of directional distances
• On Estimation of Monotone and Concave Frontier Functions
• Maximum Likelihood, Consistency and Data Envelopment Analysis: A Statistical Foundation

Cites work

• scientific article; zbMATH DE number 756563 (Why is no real title available?)
• ASYMPTOTICS AND CONSISTENT BOOTSTRAPS FOR DEA ESTIMATORS IN NONPARAMETRIC FRONTIER MODELS
• Large Sample Approximation of the Distribution for Convex-Hull Estimators of Boundaries
• Measuring the efficiency of decision making units
• Non-parametric tests of returns to scale
• On Estimation of Monotone and Concave Frontier Functions
• On polynomial estimators of frontiers and boundaries
• On the asymptotic theory of subsampling

Cited in

(21)

• Quasi-Bayesian Inference for Production Frontiers
• Finding the right yardstick: regulation of electricity networks under heterogeneous environments
• Investigating the performance of Chinese banks over 2007--2014
• Data sharpening for improving central limit theorem approximations for data envelopment analysis-type efficiency estimators
• Aggregation of inputs and outputs prior to data envelopment analysis under big data
• Technical, allocative and overall efficiency: estimation and inference
• Subsampling bootstrap in network DEA
• Semiparametric maximum likelihood estimation of stochastic frontier model with errors-in-variables
• Improving finite sample approximation by central limit theorems for estimates from data envelopment analysis
• Inference for aggregate efficiency: theory and guidelines for practitioners
• A \(\Gamma\)-moment approach to monotonic boundary estimation
• WHEN BIAS KILLS THE VARIANCE: CENTRAL LIMIT THEOREMS FOR DEA AND FDH EFFICIENCY SCORES
• Statistical Approaches for Non‐parametric Frontier Models: A Guided Tour
• Dimension reduction in nonparametric models of production
• Variable selection in data envelopment analysis
• Data envelopment analysis: from foundations to modern advancements
• Cost-effectiveness measures on convex and nonconvex technologies
• Statistical inference for DEA estimators of directional distances
• Fast and efficient computation of directional distance estimators
• Robust Efficiency Analysis of Public Hospitals in Queensland, Australia
• Frontier estimation in the presence of measurement error with unknown variance

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