We consider the issues of noise-to-signal estimation, finite sample performance andhypothesis testing for the nonparametric efficiency estimation technique proposed inCherchye, L., T. Kuosmanen and G. T. Post (2001) 'Nonparametric efficiencyestimation in stochastic environments', forthcoming in...

We survey the methodological advances in DEA over the last 25 years and discuss the necessary conditions for a sound empirical application. We hope this survey will contribute to the further dissemination of DEA, the knowledge of its relative strengths and weaknesses, and the tools currently...