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Title: Influential observations in frontier models, a robust non-oriented approach to the water sector
Authors: De Witte, Kristof ×
Marques, Rui #
Issue Date: Dec-2010
Publisher: Baltzer Science Publishers
Series Title: Annals of Operations Research vol:181 issue:1 pages:377-392
Abstract: This paper suggests an outlier detection procedure which applies a nonparametric
model accounting for undesired outputs and exogenous influences in the sample. Although
efficiency is estimated in a deterministic frontier approach, each potential outlier initially
benefits of the doubt of not being an outlier. We survey several outlier detection procedures
and select five complementary methodologies which, taken together, are able to detect all
influential observations. To exploit the singularity of the leverage and the peer count, the
super-efficiency and the order-m method and the peer index, it is proposed to select these
observations as outliers which are simultaneously revealed as atypical by at least two of the
procedures. A simulated example demonstrates the usefulness of this approach. The model
is applied to the Portuguese drinking water sector, for which we have an unusually rich data
set.
ISSN: 0254-5330
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center of Public Economics, Leuven
Teacher Training, Faculty of Economics and Business, Leuven
× corresponding author
# (joint) last author

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