Principal Component Analysis to Ranking Technical Efficiencies through Stochastic Frontier Analysis and DEA

Keywords

Principal Component Analysis, Stochastic Frontier Analysis, Technical Efficiency, Data Envelopment Analysis, Secondary Schools

Abstract

The Stochastic Frontier Analysis permits evaluating the Technical Efficiency scores for one output variable to obtain the corresponding Technical Efficiency of n Decision-Making Units (DMU). The objective of this work is a comparison between a Stochastic Frontier Analysis, with same input and different output variables, and the Data Envelopment Analysis. You get k Technical Efficiency TE(yi) which are unified by a Principal Component Analysis and compared with the results of a DEA on the same data.

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