Stochastic Efficiency Measurement : the Curse of Theoretical Consistency

@inproceedings{Sauer2004StochasticEM,
  title={Stochastic Efficiency Measurement : the Curse of Theoretical Consistency},
  author={Johannes Sauer},
  year={2004}
}
The availability of efficiency estimation software – freely distributed via the internet and relatively easy to use – recently inflated the number of corresponding applications. The resulting efficiency estimates are used without a critical assessment with respect to the literature on theoretical consistency, flexibility and the choice of the appropriate functional form. The robustness of policy suggestions based on inferences from efficiency measures nevertheless crucially depends on… CONTINUE READING