Data Envelopment Analysis (DEA) is a widely applied nonparametric method for comparative evaluation of firms’ efficiency. A deficiency of DEA is that the efficiency scores assigned to each firm are sensitive to sampling variations, particularly when small samples are used. In addition, an...

This paper discusses the finite sample bias of analogue bounds under the monotone instrumental variables assumption. By analyzing the bias function, we first propose a conservative estimator which is biased downwards (upwards) when the analogue estimator is biased upwards (downwards). Using the...

In Data Envelopment Analysis (DEA) context financial data/ ratios have been used in order to produce a unified measure of performance metric. However, several scholars have indicated that the inclusion of financial ratios create biased efficiency estimates with implications on firms’ and...