Non-Parametric Tests for Firm Efficiency in Case of Errors-in-Variables

16 Pages Posted: 26 Aug 2006

See all articles by Timo Kuosmanen

Timo Kuosmanen

Aalto University School of Business

Thierry Post

Graduate School of Business of Nazarbayev University

Date Written: December 2001 2,

Abstract

This paper develops a novel statistic for firm efficiency called efficiency depth that allows for statistical inference in case of errors-in-variables. We derive statistical tests that require minimal statistical assumptions; neither the sample distribution nor the noise level is required. An empirical illustration for European banks illustrates that - despite the minimal assumptions- the tests can have substantial discriminating power in practical applications.

Keywords: firm efficiency, nonparametric analysis, errors-in-variables

JEL Classification: M, G30, C40

Suggested Citation

Kuosmanen, Timo and Post, Thierry, Non-Parametric Tests for Firm Efficiency in Case of Errors-in-Variables (December 2001 2,). ERIM Report Series Reference No. ERS-2001-06-F&A. Available at SSRN: https://ssrn.com/abstract=370866

Timo Kuosmanen (Contact Author)

Aalto University School of Business ( email )

P.O. Box 1210
Runeberginkatu 22-24
Helsinki, Finland 00101
Finland

HOME PAGE: http://www.aalto.fi

Thierry Post

Graduate School of Business of Nazarbayev University ( email )

53 Kabanbay Batyra Avenue
Astana, 010000
Kazakhstan

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