Estimating DEA Confidence Intervals for Canadian Urban Paratransit Agencies Using Panel Data Analysis GCP-08-01

Darold T. Barnum, John M. Gleason, & Brendon Hemily

The views expressed in this report represent those of the author(s) and not necessarily those of the Great Cities Institute or the University of Illinois at Chicago.

This paper illustrates three concepts new to the Data Envelopment Analysis (DEA) literature, and applies them to data from Canadian urban paratransit agencies. First, it predicts valid confidence intervals and trends for each agency’s true efficiency. Second, it uses Panel Data Analysis methodology, a set of statistical procedures that are more likely to produce valid estimates than those commonly used in DEA studies. Third, it uses a new method of identifying and adjusting for environmental effects that has more power than conventional procedures.

Full Text PDF »