New Stata command detects outliers for more accurate efficiency analysis.
The article introduces a new method called orderalpha for analyzing efficiency in data using Stata. This method is a nonparametric approach that helps reduce sensitivity to outliers and measurement errors compared to traditional methods like data envelopment analysis (DEA). By allowing for super-efficient observations beyond the estimated production frontier, orderalpha provides a more robust analysis. The researchers also developed a tool called oaoutlier to detect potential outliers in the data before conducting efficiency analysis.