Evaluating Contextual Variables Affecting Productivity Using Data Envelopment Analysis

• Published in: Operations research Vol. 56; no. 1; pp. 48 - 58
• Main Authors: Banker, Rajiv D, Natarajan, Ram
• Format: Journal Article
• Language: English
• Published: Linthicum, MD INFORMS 01.01.2008; Institute for Operations Research and the Management Sciences
• Subjects: applications; Applied sciences; Consistent estimators; Context effects (Psychology); Cubic polynomials; Data envelopment analysis; Decision making; Decision theory. Utility theory; effectiveness/performance; Efficiency; Error rates; Estimation methods; Estimation theory; Estimators; Evaluation; Exact sciences and technology; Firm modelling; Influence; Inventory control, production control. Distribution; Mathematics; Maximum likelihood estimation; Methods; Monte Carlo simulation; Noise; nonparametric; Nonparametric inference; Operational research and scientific management; Operational research. Management science; Operations research; organizational studies; Performance evaluation; probability; Probability and statistics; Production estimates; Production functions; Productivity; Regression analysis; Sciences and techniques of general use; Simulation; Social accounting; Socioeconomic factors; Statistics; stochastic model applications; Stochastic models; Studies; Variables; Performance evaluation; Productivity; Stochastic model; Monte Carlo method; Random noise; organizational studies: productivity; Statistical analysis; Probabilistic approach; Decision support system; Decision making; Non parametric estimation; Regression analysis; Modeling; Independent variable; Parametric method; Consistent estimator; Least squares method; effectiveness/performance; statistics: nonparametric; probability: stochastic model applications; simulation: applications; Maximum likelihood; Data envelopment analysis

A DEA-based stochastic frontier estimation framework is presented to evaluate contextual variables affecting productivity that allows for both one-sided inefficiency deviations as well as two-sided random noise. Conditions are identified under which a two-stage procedure consisting of DEA followed b...