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Some Remarks on Modified FDH

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  • Tom Puyenbroeck

Abstract

One of the tools in theoretical and empirical work on the measurement of productive efficiency is the socalled Free Disposal Hull (FDH) method. As a result of its very generous character, many of the observations belonging to an evaluated dataset are labeled efficient by this method. Modified FDH, similar in spirit as Andersen and Petersen's modified Data Envelopment Analysis, may thus be used to discriminate between FDH-efficient units. We aim to show why particularly for FDH this method seems quite apt and may be called for as a valuable complementary tool to standard FDH analysis. Copyright Kluwer Academic Publishers 1998

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  • Tom Puyenbroeck, 1998. "Some Remarks on Modified FDH," Journal of Productivity Analysis, Springer, vol. 9(1), pages 81-94, January.
    • Handle: RePEc:kap:jproda:v:9:y:1998:i:1:p:81-94
    DOI: 10.1023/A:1018372414320
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    References listed on IDEAS

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    1. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
    2. Grosskopf, S, 1986. "The Role of the Reference Technology in Measuring Productive Efficiency," Economic Journal, Royal Economic Society, vol. 96(382), pages 499-513, June.
    3. Charnes, A. & Cooper, W. W. & Huang, Z. M. & Sun, D. B., 1990. "Polyhedral Cone-Ratio DEA Models with an illustrative application to large commercial banks," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 73-91.
    4. Henry Tulkens, 2006. "On FDH Efficiency Analysis: Some Methodological Issues and Applications to Retail Banking, Courts and Urban Transit," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 311-342, Springer.
    5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    6. A. Charnes & W. W. Cooper & E. Rhodes, 1981. "Evaluating Program and Managerial Efficiency: An Application of Data Envelopment Analysis to Program Follow Through," Management Science, INFORMS, vol. 27(6), pages 668-697, June.
    7. Peter Bogetoft, 1994. "Incentive Efficient Production Frontiers: An Agency Perspective on DEA," Management Science, INFORMS, vol. 40(8), pages 959-968, August.
    8. Thompson, Russell G. & Langemeier, Larry N. & Lee, Chih-Tah & Lee, Euntaik & Thrall, Robert M., 1990. "The role of multiplier bounds in efficiency analysis with application to Kansas farming," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 93-108.
    9. Bruno de Borger & Kristiaan Kerstens & Wim Moesen & Jacques Vanneste, 1994. "A non-parametric Free Disposal Hull (FDH) approach to technical efficiency: an illustration of radial and graph efficiency measures and some sensitivity results," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 130(IV), pages 647-667, December.
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    2. Fabiola Saavedra-Caballero, 2024. "Recent Graduates in the Labor Market: The Efficiency Frontier of Higher Education Institutions," Research in Higher Education, Springer;Association for Institutional Research, vol. 65(4), pages 755-774, June.

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