Bootstrapping the data envelopment analysis Malmquist productivity index

Mickael Löthgren · Magnus Tambour

59 citations0/0 files storedApplied Economics

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Efficiency Analysis Using DEA Management and Optimization Techniques Economic Growth and Productivity

Abstract

This paper presents a bootstrap approach to calculate confidence intervals for firm-specific Malmquist productivity indices obtained from data envelopment analysis (DEA) models. The bootstrap is easily implemented and allows identification of production units that have significant productivity changes. An application using data from Swedish eye-care departments is included. We find that 40% of departments have significant progress in productivity whereas only 10% of the departments have a significant regress in productivity. This differs from the original results where about half the sample have estimates of progress and the other half have estimates of regress in productivity.

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References

1978Measuring the efficiency of decision making units 1982The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity 2015Theory of Cost and Production Functions 1998Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models 1972Theory of Cost and Production Functions.1994Productivity Developments in Swedish Hospitals: A Malmquist Output Index Approach 1996Statistical inference and nonparametric efficiency: A selective survey 1995Comparing mean efficiency and productivity scores from small samples: A bootstrap methodology

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