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A non-parametric Free Disposal Hull (FDH) approach to technical efficiency: an illustration of radial and graph efficiency measures and some sensitivity results

Author

Listed:
  • Bruno de Borger
  • Kristiaan Kerstens
  • Wim Moesen
  • Jacques Vanneste

Abstract

The purpose of this paper is to investigate the sensitivity of a recently proposed non-parametric approach to technical efficiency measurement. Using a data set of Belgian municipalities, we analyze the sensitivity of the Free Disposal Hull (FDH) approach with respect to the number of input and output dimensions and with respect to sample size, and we consider the impact of outliers on efficiency scores. We finally investigate the effects of using a variety of alternative (radial) efficiency measures.

Suggested Citation

  • 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.
    • Handle: RePEc:ses:arsjes:1994-iv-3
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    Cited by:

    1. 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.
    2. Florens, Jean-Pierre & Schwarz, Maik & Van Bellegem, Sébastien, 2010. "Nonparametric Frontier Estimation from Noisy Data," TSE Working Papers 10-179, Toulouse School of Economics (TSE).
    3. Tom Puyenbroeck, 1998. "Some Remarks on Modified FDH," Journal of Productivity Analysis, Springer, vol. 9(1), pages 81-94, January.
    4. Bacha Kebede Debela, 2022. "Inter-Organizational Bench-Learning to Respond to Climate Change and Reduce Trade-Offs in Urban Drinking Water Supply: The Case of Grade 2B Municipalities in Oromia National Regional State, Ethiopia," SAGE Open, , vol. 12(3), pages 21582440221, September.
    5. Karbhari, Yusuf & Muye, Ibrahim & Hassan, Ahmad Fahmi S. & Elnahass, Marwa, 2018. "Governance mechanisms and efficiency: Evidence from an alternative insurance (Takaful) market," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 56(C), pages 71-92.
    6. Jugal Mahabir, 2014. "Quantifying Inefficient Expenditure in Local Government: A Free Disposable Hull Analysis of a Sample of South African Municipalities," South African Journal of Economics, Economic Society of South Africa, vol. 82(4), pages 493-517, December.
    7. Nuria Bosch Roca & Francisco Pedraja & Javier Suarez Pandiello, 1999. "Measuring the efficiency in spanish municipal refuse collection services," Working Papers in Economics 46, Universitat de Barcelona. Espai de Recerca en Economia.
    8. Jean-François Brun & Constantin Thierry Compaore, 2021. "Public Expenditures Efficiency On Education Distribution in Developing Countries," Working Papers hal-03116615, HAL.
    9. Jean-François Brun & Constantin Thierry Compaore, 2021. "Public Expenditures Efficiency On Education Distribution in Developing Countries," CERDI Working papers hal-03116615, HAL.
    10. Anne-Kathrin Last & Heike Wetzel, 2009. "Effizienzmessverfahren – eine Einführung," Working Paper Series in Economics 145, University of Lüneburg, Institute of Economics.

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