This paper demonstrates that the bootstrap procedure suggested by Ferrier and Hirschberg (1997) gives inconsistent estimates. A very simple example is given to illustrate the statistical issues underlying nonparametric efficiency measurement and the problems with the Ferrier/Hirschberg approach,...

Efficiency scores of firms are measured by their distance to an estimated production frontier. The economic literature proposes several nonparametric frontier estimators based on the idea of enveloping the data (FDH and DEA-type estimators). Many have claimed that FDH and DEA techniques are...

In productivity and efficiency analysis, the technical efficiency of a production unit is measured through its distance to the efficient frontier of the production set. The most familiar non-parametric methods use Farrell–Debreu, Shephard, or hyperbolic radial measures. These approaches...