Abstract

Non-parametric tests of returns to scale

L. SIMAR and P. WILSON

This paper discuss various statistics for testing hypotheses regarding returns to scale in the context of non-parametric models of technical efficiency. In addition, the paper presents bootstrap estimation procedures which yield appropriate critical values for the test statistics. Evidence on the true sizes and power of the various proposed tests is obtained from Monte-Carlo experiments. This paper is an extension of earlier work in [Manage. Sci. 44 (1998) 49; J. Appl. Statist. 27 (2000b) 779].

  Last update: October, 8, 2002  - Contact : S. Malali