SENSITIVITY ANALYSIS OF EFFICIENCY SCORES - HOW TO BOOTSTRAP IN NONPARAMETRIC FRONTIER MODELS

Efficiency scores of production units are generally measured relative to an estimated production frontier. Nonparametric estimators (DEA, FD H,...) are based on a finite sample of observed production units. The bootstrap is one easy way to analyze the sensitivity of efficiency sco res relative to the sampling variations of the estimated frontier. The main point in order to validate the bootstrap is to define a reasonab le data-generating process in this complex framework and to propose a reasonable estimator of it. This paper provides a general methodology of bootstrapping in nonparametric frontier models. Some adapted method s are illustrated in analyzing the bootstrap sampling variations of in put efficiency measures of electricity plants.