IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v321y2025i2p644-663.html
   My bibliography  Save this article

Likelihood-ratio test for technological differences in two-stage data envelopment analysis for panel data

Author

Listed:
  • Du, Kai
  • Zelenyuk, Valentin

Abstract

This study explores the question of adapting a likelihood-ratio test in the two-stage data envelopment analysis (DEA) framework, where DEA estimates are regressed against external factors. We focus on the hypotheses of testing the technological difference across time periods (or groups) and propose two bootstrapping procedures. Our Monte Carlo (MC) simulation shows that the proposed test has a substantially better-estimated size for the case of smoothing the ‘spurious ones’, rather than removing them. MC simulation also confirms the curse of dimensionality when the input and output variables increase in the production model. Finally, the proposed test is demonstrated in an empirical illustration.

Suggested Citation

  • Du, Kai & Zelenyuk, Valentin, 2025. "Likelihood-ratio test for technological differences in two-stage data envelopment analysis for panel data," European Journal of Operational Research, Elsevier, vol. 321(2), pages 644-663.
    • Handle: RePEc:eee:ejores:v:321:y:2025:i:2:p:644-663
    DOI: 10.1016/j.ejor.2024.09.039
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221724007409
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2024.09.039?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:321:y:2025:i:2:p:644-663. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.