AN EFFICIENCY RANKING OF SPANISH SEAPORTS USING FDH METHODOLOGY

Amparo Medal and Ramon Sala

Articles, 2011, vol. 38, issue 2

Abstract: This paper analyses the efficiency of Spanish seaports using the Free Disposal Hull (FDH) methodology and presents a method for ranking the evaluated units. Nonparametric frontier methods, as Data Envelopment Analysis (DEA) and FDH, have been applied to the efficiency analysis of decision making units (DMUs). Despite the greater popularity of DEA relative to FDH, this last method nevertheless enables a comparison to be directly made between observed ports, whereas traditional DEA only enables comparisons between the frontier projections. The main disadvantage of FDH methodology is the observation of many efficient units, which makes it difficult to obtain a hierarchal ranking. This paper solves this problem and presents a new method for ranking the efficiency of the seaports with FDH methodology.

Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:jte:journl:2011:2:38:5

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