Non-Parametric Tests for Firm Efficiency in Case of Errors-in-Variables
This paper develops a novel statistic for firm efficiency called efficiency depth that allows for statistical inference in case of errors-in-variables. We derive statistical tests that require minimal statistical assumptions; neither the sample distribution nor the noise level is required. An empirical illustration for European banks illustrates that - despite the minimal assumptions- the tests can have substantial discriminating power in practical applications.
|Keywords||errors-in-variables, firm efficiency, nonparametric analysis|
|Publisher||Erasmus Research Institute of Management (ERIM)|
Kuosmanen, T., & Post, G.T.. (2001). Non-Parametric Tests for Firm Efficiency in Case of Errors-in-Variables (No. ERS-2001-06-F&A). Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/72