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Testing scale efficiency in DEA models: a bootstrapping approach

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Abstract:

This paper presents a method for estimation and test of firm-specific scale efficiency using data envelopment analysis (DEA). The use of a simple bootstrap algorithm is proposed to perform firm-specific inference for scale efficiency. An empirical application using Swedish hospital data is provided. It is found that about 40% of the departments were scale efficient according to the original results. However, for about one-third of those departments the hypothesis of scale efficiency could be rejected.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/000368499323445

Publication date: October 1, 1999

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