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A Bayesian approach to statistical inference in stochastic DEA

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  • Tsionas, Efthymios G.
  • Papadakis, Emmanuel N.

Abstract

Stochastic DEA can deal effectively with noise in the non-parametric measurement of efficiency but unfortunately formal statistical inference on efficiency measures in not possible. In this paper, we provide a Bayesian approach to the problem organized around simulation techniques that allow for finite-sample inferences on efficiency scores. The new methods are applied to efficiency analysis of the Greek banking system for the period 1993-1999. The results show that the majority of the Greek banks operate close to best market practices.

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  • Tsionas, Efthymios G. & Papadakis, Emmanuel N., 2010. "A Bayesian approach to statistical inference in stochastic DEA," Omega, Elsevier, vol. 38(5), pages 309-314, October.
    • Handle: RePEc:eee:jomega:v:38:y:2010:i:5:p:309-314
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