FDH Directional Distance Functions with an Application to European Commercial Banks
Laurens Cherchye,
Timo Kuosmanen and
Thierry Post
Journal of Productivity Analysis, 2001, vol. 15, issue 3, 215 pages
Abstract:
Weextend Free Disposable Hull (FDH) efficiency analysis towardsthe general directional distance function framework. The profitinterpretation of directional distance functions is extendedto the non-convex FDH technologies. In addition, we derive anefficient enumerative algorithm for computing distance measuresin Free Disposable Hull (FDH) technologies, which applies tothe entire (infinitely large) family of directional distancefunctions. A simple numerical example and an application to Europeancommercial banks illustrate the algorithm. Copyright Kluwer Academic Publishers 2001
Keywords: Free Disposable Hull (FDH); Data Envelopment Analysis (DEA); directional distance function; enumeration; banks (search for similar items in EconPapers)
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jproda:v:15:y:2001:i:3:p:201-215
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DOI: 10.1023/A:1011176325187
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