Template-Type: ReDIF-Paper 1.0
Author-Name: Kuosmanen, T.
Author-Name-Last: Kuosmanen
Author-Name-First: Timo
Author-Name: Post, G.T.
Author-Name-Last: Post
Author-Name-First: Thierry
Title: Testing for Productive Efficiency with Errors-in-Variables: with an application to the Dutch electricity sesctor
Abstract: We develop a nonparametric test of productive efficiency that accounts for the possibility of errors-in-variables. The test allows for statistical inference based on the extreme value distribution of the L?? norm. In contrast to the test proposed by Varian, H (1985): 'Nonparametric Analysis of Optimising Behaviour with Measurement Error, Journal of Econometrics 30, 445-458, our test can be computed using simple enumeration algorithms or linear programming. An empirical application for the Dutch electricity sector illustrates the proposed test procedure.
Creation-Date: 2001-04-19
File-URL: https://repub.eur.nl/pub/88/erimrs20010419163528.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2001-22-F&A
Classification-JEL: C14, G3, M
Keywords: data envelopment analysis (DEA), errors-in-variables, extreme value theory, hypothesis testing, nonparametric production analysis
Handle: RePEc:ems:eureri:88