This paper introduces a novel method to incorporate categorical non-discretionary variables in Data Envelopment Analysis (DEA) models. While solutions to this problem have been introduced before, they have rarely been employed in applied work. We surmise that existing solution concepts pose...

The use of non-parametric frontier methods for the evaluation of product market efficiency in heterogeneous markets seems to have gained some popularity recently. However, the statistical properties of these frontier estimators have been largely ignored. The main point is that non-parametric...