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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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Bibliographic Info

Article provided by Elsevier in its journal Omega.

Volume (Year): 38 (2010)
Issue (Month): 5 (October)
Pages: 309-314

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Handle: RePEc:eee:jomega:v:38:y:2010:i:5:p:309-314

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Related research

Keywords: Efficiency measurement Stochastic DEA Bayesian methods Statistical inference;

References

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  19. Halkos, George & Salamouris, Dimitrios, 2001. "Efficiency Measures of the Greek Banking Sector: A Non-Parametric Approach for the Period 1997-1999," MPRA Paper 2858, University Library of Munich, Germany.
  20. Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 1999. " The Components of Output Growth: A Stochastic Frontier Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 455-87, November.
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Citations

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Cited by:
  1. Friesner, Daniel & Mittelhammer, Ron & Rosenman, Robert, 2013. "Inferring the incidence of industry inefficiency from DEA estimates," European Journal of Operational Research, Elsevier, vol. 224(2), pages 414-424.
  2. Leleu, Hervé, 2013. "Inner and outer approximations of technology: A shadow profit approach," Omega, Elsevier, vol. 41(5), pages 868-871.
  3. Merkert, Rico & Hensher, David A., 2011. "The impact of strategic management and fleet planning on airline efficiency - A random effects Tobit model based on DEA efficiency scores," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(7), pages 686-695, August.
  4. Barros, Carlos Pestana & Managi, Shunsuke & Matousek, Roman, 2012. "The technical efficiency of the Japanese banks: Non-radial directional performance measurement with undesirable output," Omega, Elsevier, vol. 40(1), pages 1-8, January.
  5. Paradi, Joseph C. & Rouatt, Stephen & Zhu, Haiyan, 2011. "Two-stage evaluation of bank branch efficiency using data envelopment analysis," Omega, Elsevier, vol. 39(1), pages 99-109, January.
  6. Assaf, A. George & Barros, Carlos & Sellers-Rubio, Ricardo, 2011. "Efficiency determinants in retail stores: a Bayesian framework," Omega, Elsevier, vol. 39(3), pages 283-292, June.

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