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Using panel data analysis to estimate confidence intervals for the DEA efficiency of individual decision making units

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  • Darold Barnum
  • John Gleason
  • Brendon Hemily

Abstract

This article demonstrates a methodology using panel data analysis to estimate confidence intervals for the data envelopment analysis efficiency of individual decision making units (DMUs), and the statistical significance of trends in individual DMU efficiency. The procedure accounts for stochastic variations of the inputs and outputs of the target DMU as well as stochastic variations of the inputs and outputs of its efficient benchmark peers. The procedure is demonstrated using 9 years of data from 34 Canadian paratransit agencies.

Suggested Citation

  • Darold Barnum & John Gleason & Brendon Hemily, 2009. "Using panel data analysis to estimate confidence intervals for the DEA efficiency of individual decision making units," Applied Economics, Taylor & Francis Journals, vol. 41(26), pages 3319-3326.
    • Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3319-3326
    DOI: 10.1080/00036840701493741
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    Cited by:

    1. D T Barnum & J M Gleason & B Hemily & J Lin & P Wang, 2010. "Progressing from uncertainty to risk for DEA-based decisions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(10), pages 1548-1555, October.
    2. Barnum, Darold T. & Karlaftis, Matthew G. & Tandon, Sonali, 2011. "Improving the efficiency of metropolitan area transit by joint analysis of its multiple providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1160-1176.

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