Slack-based directional distance function in the presence of bad outputs: theory and application to Vietnamese banking

Manh D. Pham () and Valentin Zelenyuk
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Manh D. Pham: The University of Queensland

Empirical Economics, 2018, vol. 54, issue 1, No 7, 153-187

Abstract: Abstract In this paper we extend the slack-based directional distance function introduced by Färe and Grosskopf (Eur J Oper Res 200(1):320–322, 2010) to measure efficiency in the presence of bad outputs and illustrate it through an application on data of Vietnamese commercial banks. We also compare results from the slack-based directional distance function relative to the directional distance function, the enhanced hyperbolic efficiency measure (Färe et al. in Rev Econ Stat 71(1):90–98, 1989) and the Farrell-type technical efficiency and confirm that it has greater discriminative power.

Keywords: Banking; Bad outputs; Data envelopment analysis; Directional distance function; Slack-based efficiency; Performance analysis (search for similar items in EconPapers)
JEL-codes: C14 C15 C44 D24 G21 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (15)

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Working Paper: Slack-based directional distance function in the presence of bad outputs: Theory and Application to Vietnamese Banking (2016)
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DOI: 10.1007/s00181-017-1232-7

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