Template-Type: ReDIF-Paper 1.0
Author-Name:  Mette Asmild
Author-Name-First: Mette
Author-Name-Last: Asmild
Author-Email:  meas@foi.ku.dk
Author-Workplace-Name: Institute of Food and Resource Economics, University of Copenhagen
Author-Name:  Jens Leth Hougaard
Author-Name-First: Jens Leth
Author-Name-Last: Hougaard
Author-Email: jlh@foi.ku.dk
Author-Workplace-Name: Institute of Food and Resource Economics, University of Copenhagen
Author-Name:  Ole B. Olesen
Author-Name-First: Ole B.
Author-Name-Last: Olesen
Author-Workplace-Name: Department of Business and Economics, University of Southern Denmark
Title:  Testing over-representation of observations in subsets of a DEA technology
Abstract: This paper proposes a test for whether data are over-represented in a given production zone, i.e. a subset of a production possibility set which has been estimated using the non-parametric Data Envelopment Analysis (DEA) approach. A binomial test is used that relates the number of observations inside such a zone to a discrete probability weighted relative volume of that zone. A Monte Carlo simulation illustrates the performance of the proposed test statistic and provides good estimation of both facet probabilities and the assumed common inefficiency distribution in a three dimensional input space.
Length: 31 pages
Creation-Date:  2011-12
File-URL: http://okonomi.foi.dk/workingpapers/MSAPpdf/MSAP2011/MSAP_WP04_2011.pdf
File-Format: Application/pdf
Number: 04_2011
Classification-JEL: 
Keywords: Data Envelopment Analysis (DEA), Over-representation, Data density, Binomial test, Convex hull
Handle: RePEc:foi:msapwp:04_2011