Abstract
In this paper we present some recent methodological innovations in Data Envelopment Analysis and empirical results from the application of these innovations to the U.S. public accounting industry. This paper draws on three different working papers: Banker, Chang and Cunningham (1999), Banker, Chang and Natarajan (1999) and Banker and Natarajan (1999). We describe how a consistent estimator of aggregate technical and allocative inefficiency can be obtained using DEA models and how it can be used to derive firm-specific estimates of allocative inefficiency. We also provide a statistical foundation for the various two-stage methods used in the prior DEA literature to estimate the impact of contextual variables on productivity. Finally, we document the presence of significant technical and allocative inefficiencies in the U.S. public accounting industry and explain the variation in productivity across firms through a set of contextual variables.
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Banker, R.D., Chang, H., Cunningham, R., Natarajan, R. (1999). Recent Advances in Data Envelopment Analysis: An Illustrative Application to the U.S. Public Accounting Industry. In: Westermann, G. (eds) Data Envelopment Analysis in the Service Sector. Harzer wirtschaftswissenschaftliche Schriften. Deutscher Universitätsverlag, Wiesbaden. https://doi.org/10.1007/978-3-663-08343-6_9
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DOI: https://doi.org/10.1007/978-3-663-08343-6_9
Publisher Name: Deutscher Universitätsverlag, Wiesbaden
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