Comparing groups of decision-making units in efficiency based on semiparametric regression

  • Hohsuk Noh
  • , Seong J. Yang*
  • *Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review

Abstract

We consider a stochastic frontier model in which a deviation of output from the production frontier consists of two components, a one-sided technical inefficiency and a two-sided random noise. In such a situation, we develop a semiparametric regression-based test and compare the technical efficiencies of the different decision-making unit groups, assuming that the production frontier function is the same for all the groups. Our test performs better than the previously proposed ones for the same purpose in numerical studies, and also has the theoretical advantage of working under more general assumptions. To illustrate our method, we apply the proposed test to Program for International Student Assessment (PISA) 2015 data and investigate whether an efficiency difference exists between male and female student groups at a specific age in terms of learning time and achievement in mathematics.

Original languageEnglish
Article number233
JournalMathematics
Volume8
Issue number2
DOIs
StatePublished - 2020.02.1

Keywords

  • Data envelopment analysis
  • Group efficiency comparison
  • Semiparametric regression
  • Stochastic frontier model

Quacquarelli Symonds(QS) Subject Topics

  • Mathematics

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