A new production-frontier specification is proposed when dealing with decision-making units whose efficiencies are correlated with the performances of the neighbors (spatial dependence), providing a bias reduction with respect to standard data envelopment analysis (DEA) methods. For the...

This paper analyses region-level technical efficiency in the European Union over the 1995 to 2007 period. We propose the application of a nonparametric conditional frontier methodology to account for the presence of geographical externalities that are beyond the control of regional authorities....