Far out or alone in the crowd: A taxonomy of peers in DEA
A method is presented for classifying strongly efficient units in DEA as interior or exterior, and as self-evaluators or active peers. The exterior strongly efficient units are found by running the enveloping procedure “from below”. There is no firm production-function evidence of the efficiency of exterior self-evaluators. Interior self-evaluators are more likely to have active peers as neighbours in more directions and may therefore represent technology. When performing a second stage regression analysis of efficiency scores, exterior selfevaluators should be removed. The proportion of exterior active peers also provides information on whether the variable specification is supported by the data.
Edvardsen, D. F., F.R. Førsund and S.A.C. Kittelsen
C44, C61, D24, I19, L32
Interior and exterior peer, active peer and self-evaluator, DEA, referencing zone, nursing homes
Prosjekt:4101 - Økonomi og helse
Research Council of Norway through HERO