Article ID: | iaor20062350 |
Country: | United Kingdom |
Volume: | 56 |
Issue: | 6 |
Start Page Number: | 676 |
End Page Number: | 686 |
Publication Date: | Jun 2005 |
Journal: | Journal of the Operational Research Society |
Authors: | Sengupta J.K. |
Keywords: | engineering |
The effects of data heterogeneity on the efficiency estimate by data envelopment analysis are evaluated here in terms of empirical applications in the computer industry. Scale or size variations of firms and heteroscedasticity are the two forms of heterogeneity considered here. Our empirical results show that the adverse effects of data heterogeneity can be considerably reduced by the methods suggested here.