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 efficie ncy performance trends using productive efficiency measures derived through various Data Envelopment Analysis (DEA) models, The paper starts with a di scussion of the difficulties in obtaining consistent ranks from DEA efficie ncy ratings. Next, a procedure is proposed to identify intertemporal perfor mance trends using any one of several possible efficiency measures. Another procedure is then developed to test the stability over time of the rank po sitions of the analyzed units. For each statistical procedure, a small nume rical example involving DEA efficiency measures is provided to illustrate t he proposed technique. Finally, the new procedures are applied to data refl ecting the macro-economic performance of 17 OECD nations in 1979-1988. The outcomes of the application are discussed and contrasted with previous rese arch in this area.