The Effect of Sample Size on the Mean Efficiency in DEA with an Application to Electricity Distribution in Australia, Sweden and New Zealand

This study examines the effect of sample size on the mean productive efficiency of firms when the efficiency is evaluated using the non-parametric approach of Data Envelopment Analysis. By employing Monte Carlo simulation, we show how the mean efficiency is related to the sample size. The paper discusses the implications for international comparisons. As an application, we investigate the efficiency of the electricity distribution industries in Australia, Sweden and New Zealand. Copyright Kluwer Academic Publishers 1998