Accounting for Environmental Effects and Statistical Noise in Data Envelopment Analysis

@inproceedings{Fried2001AccountingFE,
  title={Accounting for Environmental Effects and Statistical Noise in Data Envelopment Analysis},
  author={H. O. Fried and C. A. Knox Lovell},
  year={2001}
}
In this paper we propose a new technique for incorporating environmental effects and statistical noise into a producer performance evaluation based on data envelopment analysis (DEA). The technique involves a three-stage analysis. In the first stage, DEA is applied to outputs and inputs only, to obtain initial measures of producer performance. In the second stage, stochastic frontier analysis (SFA) is used to regress first stage performance measures against a set of environmental variables… CONTINUE READING
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