Testing for Productive Efficiency with Errors-in-Variables : With an Application to the Dutch Electricity Sesctor

We develop a nonparametric test of productive efficiency that accounts for thepossibility of errors-in-variables. The test allows for statistical inference based on theextreme value distribution of the L?? norm. In contrast to the test proposed by Varian,H (1985): 'Nonparametric Analysis of Optimising Behaviour with MeasurementError, Journal of Econometrics 30, 445-458, our test can be computed using simpleenumeration algorithms or linear programming. An empirical application for theDutch electricity sector illustrates the proposed test procedure

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Year of publication:	2009
Authors:	Kuosmanen, Timo ; Post, Thierry ; Scholtes, Stefan
Publisher:	[S.l.] : SSRN
Subject:	Niederlande \| Netherlands \| Theorie \| Theory \| Data-Envelopment-Analyse \| Data envelopment analysis \| Statistischer Test \| Statistical test \| Technische Effizienz \| Technical efficiency \| Elektrizitätswirtschaft \| Electric power industry