In this study the non-parametric method of Data Envelopment Analysis (DEA) is applied to determine the technical efficiency (TE) index of the G7 countries, when variable returns to scale (VRS) hold for the entire period under consideration (1993–2016). As inputs labor and capital are used while we utilize GDP as output. In the second stage of our analysis the DEA bootstrap approach along the lines of Simar and Wilson (2007) is applied to deal with the disadvantages of a non-parametric DEA set up.
