A note on Sigma–Mu efficiency analysis as a methodology for evaluating units through composite indicators

Recent research introduces a methodology for constructing composite indicators, called null null null null σ null − null μ null null null null efficiency analysis, illustrating its potential in a case study of world happiness. Building on the landmark research paper, we propose a novel model that allows statistical inference for both weights in the composite indicator as well as inefficiency, fully accounting for outliers in the data and...