This paper extends the nonparametric approach to efficiency analysis to deal with uncertainty of input-output prices.We generalize the notion of economic efficiency to derive necessary and sufficient first-order stochastic dominance (FSD) efficiency conditions. Interestingly, the FSD conditions include as limiting cases the traditional conditions for economic efficiency and technical efficiency. Furthermore, we propose empirical tests for these FSD

, , , ,
doi.org/1015037719942, hdl.handle.net/1765/6199
ERIM Article Series (EAS)
Journal of Productivity Analysis
Erasmus Research Institute of Management

Kuosmanen, T., & Post, T. (2002). Nonparametric Efficiency Analysis under Uncertainty: A First-Order Stochastic Dominance Approach. Journal of Productivity Analysis, 183–200. doi:1015037719942