IDEAS home Printed from
   My bibliography  Save this article

Empirical tools to assess the sensitivity of directional distance functions to direction selection


  • Antonio Peyrache
  • Cinzia Daraio


Directional Distance Functions (DDFs) are becoming a popular way of measuring efficiency as they encompass the Shephard output and input distance functions as special cases. However, the most critical and still unsolved issue related to DDF remains the selection of the direction along which to measure the distance from the efficient frontier. In this article, we propose some empirical tools which allow to quantify the sensitivity of the efficiency measurement to the selection of the direction. The proposed tools are applied on a dataset on the Italian agricultural sector.

Suggested Citation

  • Antonio Peyrache & Cinzia Daraio, 2012. "Empirical tools to assess the sensitivity of directional distance functions to direction selection," Applied Economics, Taylor & Francis Journals, vol. 44(8), pages 933-943, March.
  • Handle: RePEc:taf:applec:44:y:2012:i:8:p:933-943
    DOI: 10.1080/00036846.2010.526582

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Friesen, Jane, 1997. "The Dynamic Demand for Part-Time and Full-Time Labour," Economica, London School of Economics and Political Science, vol. 64(255), pages 495-507, August.
    2. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538-538.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Cinzia Daraio & Léopold Simar, 2016. "Efficiency and benchmarking with directional distances: a data-driven approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(7), pages 928-944, July.
    2. Hampf, Benjamin & Krüger, Jens J., 2013. "Optimal Directions for Directional Distance Functions: An Exploration of Potential Reductions of Greenhouse Gases," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79699, Verein für Socialpolitik / German Economic Association.
    3. repec:eee:ejores:v:262:y:2017:i:1:p:361-369 is not listed on IDEAS
    4. Ke Wang & Yujiao Xian & Yi-Ming Wei & Zhimin Huang, 2016. "Sources of carbon productivity change: A decomposition and disaggregation analysis based on global Luenberger productivity indicator and endogenous directional distance function," CEEP-BIT Working Papers 91, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    5. Pedro Macedo & Elvira Silva, 2017. "Sensitivity of directional technical inefficiency measures to the choice of the direction vector: a simulation study," Economics Bulletin, AccessEcon, vol. 37(1), pages 52-62.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:44:y:2012:i:8:p:933-943. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.