Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128760
Authors: 
Hahn, Franz R.
Year of Publication: 
2004
Series/Report no.: 
WIFO Working Papers 228
Abstract: 
In this paper we deal with the measurement of technical efficiency (or X-efficiency) of institutions whose operations might be significantly affected by macroeconomic, environmental and non-controllable factors. For this purpose we introduce a four-stage DEA methodology based on the approach advocated by Fried - Schmidt - Yaisawarng (1999) and advanced by Drake - Hall - Simper (2003), respectively. The latter approach improves upon the former by employing a slacks-based DEA model (SBM) in combination with a Tobit regression approach to account for potential environmental and market influences on technical efficiency. In order to cope with the inherent dependency problem of DEA-based efficiency scores when incorporated into regression analysis we propose a Bootstrap method as suggested by Xue - Harker (1999). In so doing we attempt to overcome the dependency problem which plagues the power of standard regression analysis based on DEA data. As illustration, we apply this four-stage model to a balanced panel of data of 729 Austrian banks ranging over 1995 to 2002.
Subjects: 
efficiency measurement
data envelopment analysis
slack adjustment
environmental variables
banking
JEL: 
F36
C23
C52
G21
G24
G34
Document Type: 
Working Paper

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