A cautionary note on methods of comparing programmatic efficiency between two or more groups of DMUs in data envelopment analysis

Simpson, Gary (2007). A cautionary note on methods of comparing programmatic efficiency between two or more groups of DMUs in data envelopment analysis. Journal of Productivity Analysis, 28 (1-2), pp. 141-147.

Abstract

In some applications of data envelopment analysis (DEA) there may be doubt as to whether all the DMUs form a single group with a common efficiency distribution. The Mann-Whitney rank statistic has been used to evaluate if two groups of DMUs come from a common efficiency distribution under the assumption of them sharing a common frontier and to test if the two groups have a common frontier. These procedures have subsequently been extended using the Kruskal-Wallis rank statistic to consider more than two groups. This technical note identifies problems with the second of these applications of both the Mann-Whitney and Kruskal-Wallis rank statistics. It also considers possible alternative methods of testing if groups have a common frontier, and the difficulties of disaggregating managerial and programmatic efficiency within a non-parametric framework. © 2007 Springer Science+Business Media, LLC.

Publication DOI: https://doi.org/10.1007/s11123-007-0041-y
Divisions: Aston Business School > Operations & information management
Aston Business School
Aston Business School > Operations & information management research group
Additional Information: The original publication is available at springerlink.com
Uncontrolled Keywords: data envelopment analysis (DEA),programmatic efficiency,statistics,Business and International Management,Economics and Econometrics,Social Sciences (miscellaneous)
Full Text Link: http://www.spri ... 306w6105085637/
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
Published Date: 2007-10
Authors: Simpson, Gary

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