When conducting a two-stage Data Envelopment Analysis, I have to perform the first stage on DEAP 2.1 to obtain the technical efficiency estimates, then perform the second stage (regression between technical inefficiency and the operational environment & enterprise-level variables) using other programs such as STATA. It is time consuming procedures! So, is there a possibility to perform the two stage using DEAP 2.1, and if so, how?
Finally, I used STATA 13.1 instead, where the two-stage DEA were performed using the following commands:
1) 1st stage DEA (To obtain technical efficiency scores, with the assumption of VRS and output-orientated approach)
dea capital labor = sales , rts(vrs) ort(o)
Note: (capital and labor) are the inputs, while sales is the single output of the study.
2) The technical inefficiency were calculated as: (1- VRS TE)
3) The maximum likelihood Tobit regression was conducted, using the following command:
tobit tinee region size legal age reg2 experience exp fdi inn tech, ul(1)
where: tinee is the technical inefficiency score obtained in step (2), while (region size legal age reg2 experience exp fdi inn tech) are (my own) abbreviations of the business environment and factory-level variables i.e. location, size, formality, innovation, etc.,
Win4deap software has facility to compute the 2 stage DEA analysis, it is an integrated software of deap.
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