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


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: College of Business and Social Sciences > Aston Business School > Operations & Information Management
College of Business and Social Sciences > Aston Business School
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)
Publication ISSN: 1573-0441
Last Modified: 27 Jun 2024 07:45
Date Deposited: 03 Nov 2009 09:56
Full Text Link: http://www.spri ... 306w6105085637/
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2007-10
Authors: Simpson, Gary



Version: Accepted Version

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