Analysis of Intertemporal Efficiency Trends Using Rank Statistics With an Application Evaluating the Macro Economic Performance of OECD Nations

This paper presents two applications of rank statistics to evaluate efficiency performance trends using productive efficiency measures derived through various Data Envelopment Analysis (DEA) models. The paper starts with a discussion of the difficulties in obtaining consistent ranks from DEA efficiency ratings. Next, a procedure is proposed to identify intertemporal performance trends using any one of several possible efficiency measures. Another procedure is then developed to test the stability over time of the rank positions of the analyzed units. For each statistical procedure, a small numerical example involving DEA efficiency measures is provided to illustrate the proposed technique. Finally, the new procedures are applied to data reflecting the macro-economic performance of 17 OECD nations in 1979–1988. The outcomes of the application are discussed and contrasted with previous research in this area. Copyright Kluwer Academic Publishers 1999