IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Directional Distances and their Robust versions. Computational and Testing Issues

  • Cinzia Daraio

    ()

    (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza")

  • Leopold Simar

    ()

    (Institute of Statistics, Biostatistics et Actuarial Sciences, Universite'Catholique de Louvain, Belgium)

Directional distance functions provide very flexible tools for investigating the performance of Decision Making Units (DMUs). Their flexibility relies on their ability to handle undesirable outputs and to account for non-discretionary inputs and/or outputs by fixing zero values in some elements of the directional vector. Simar and Vanhems (2012) and Simar et al. (2012) indicate how the statistical properties of Farrell-Debreu type of radial efficiency measures can be transferred to directional distances. Moreover, robust versions of these distances are also available, for conditional and unconditional measures. Bùadin et al. (2012) have shown how conditional radial distances are useful to investigate the effect of environmental factors on the production process. In this paper we develop the operational aspects for computing conditional and unconditional directional distances and their robust versions, in particular when some of the elements of the directional vector are fixed at zero. After that, we show how the approach of Bùadin et al. (2012) can be adapted in a directional distance framework, including bandwidth selection and two-stage regression of conditional efficiency scores. Finally, we suggest a procedure, based on bootstrap techniques, for testing the significance of environmental factors on directional efficiency scores. The procedure is illustrated through simulated and real data.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.dis.uniroma1.it/~bibdis/RePEc/aeg/report/2013-11.pdf
File Function: Revised version, 2013
Download Restriction: no

Paper provided by Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza" in its series DIAG Technical Reports with number 2013-11.

as
in new window

Length: 30 pages
Date of creation: Nov 2013
Date of revision:
Handle: RePEc:aeg:report:2013-11
Contact details of provider: Phone: +390677274140
Fax: +39 0677274129
Web page: http://www.dis.uniroma1.it
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Cinzia Daraio & Leopold Simar, 2003. "Introducing Environmental Variables in Nonparametric Frontier Models: a Probabilistic Approach," LEM Papers Series 2003/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  2. Simar, Léopold & Vanhems, Anne, 2010. "Probabilistic Characterization of Directional Distances and their Robust Versions," TSE Working Papers 10-195, Toulouse School of Economics (TSE).
  3. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
  4. Peter Hall & Jeff Racine & Qi Li, 2004. "Cross-Validation and the Estimation of Conditional Probability Densities," Journal of the American Statistical Association, American Statistical Association, vol. 99, pages 1015-1026, December.
  5. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
  6. Bădin, Luiza & Daraio, Cinzia & Simar, Léopold, 2012. "How to measure the impact of environmental factors in a nonparametric production model," European Journal of Operational Research, Elsevier, vol. 223(3), pages 818-833.
  7. Léopold Simar & Paul Wilson, 2011. "Two-stage DEA: caveat emptor," Journal of Productivity Analysis, Springer, vol. 36(2), pages 205-218, October.
  8. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
  9. Halkos, George E. & Tzeremes, Nickolaos G., 2013. "A conditional directional distance function approach for measuring regional environmental efficiency: Evidence from UK regions," European Journal of Operational Research, Elsevier, vol. 227(1), pages 182-189.
  10. Tristen Hayfield & Jeffrey S. Racine, . "Nonparametric Econometrics: The np Package," Journal of Statistical Software, American Statistical Association, vol. 27(i05).
  11. Racine, Jeff, 1997. "Consistent Significance Testing for Nonparametric Regression," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(3), pages 369-78, July.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:aeg:report:2013-11. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antonietta Angelica Zucconi)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.