IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/1995013.html
   My bibliography  Save this paper

Technical Efficiency Measures on DEA and FDH : A Reconsideration of the Axiomatic Literature

Author

Listed:
  • KERSTENs, Kris

    (Faculteit ETEW, K.U. Brussel)

  • VANDEN EECKAUT, Philippe

    (CORE, Université catholique de Louvain, Louvain-la-Neuve, B-1348 Belgium.)

Abstract

The aim of this paper is to evaluate both radial and nonradial measures of technical efficiency based on two popular non-parametric reference technologies, known as Data Envelopment Analysis (DEA) and the Free Disposal Hull (FDH). In addition to the traditional radial measurement, a series of alternative technical efficiency measures proposed in the theoretical literature are presented and discussed. In particular, the axioms satisfied by these efficiency measures are summarized and some of these properties are illustrated using numerical examples. Another property is proposed guaranteeing the insensitivity of the efficiency measure ,to the number of dimensions in the analysis. The latter is especially important in applied work. Furthermore, additional arguments on e.g., the cost interpretation of these efficiency measures are examined.

Suggested Citation

  • KERSTENs, Kris & VANDEN EECKAUT, Philippe, 1995. "Technical Efficiency Measures on DEA and FDH : A Reconsideration of the Axiomatic Literature," LIDAM Discussion Papers CORE 1995013, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1995013
    as

    Download full text from publisher

    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp1995.html
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Cherchye, Laurens & Van Puyenbroeck, Tom, 2001. "Product mixes as objects of choice in non-parametric efficiency measurement," European Journal of Operational Research, Elsevier, vol. 132(2), pages 287-295, July.
    2. Borger, Bruno De & Ferrier, Gary D. & Kerstens, Kristiaan, 1998. "The choice of a technical efficiency measure on the free disposal hull reference technology: A comparison using US banking data," European Journal of Operational Research, Elsevier, vol. 105(3), pages 427-446, March.
    3. Dervaux, Benoît & Kerstens, Kristiaan & Vanden Eeckaut, Philippe, 1998. "Radial and nonradial static efficiency decompositions: a focus on congestion measurement," Transportation Research Part B: Methodological, Elsevier, vol. 32(5), pages 299-312, June.
    4. McKillop, D. G. & Glass, J. C. & Ferguson, C., 2002. "Investigating the cost performance of UK credit unions using radial and non-radial efficiency measures," Journal of Banking & Finance, Elsevier, vol. 26(8), pages 1563-1591, August.
    5. Walter Briec & Laurent Cavaignac & Kristiaan Kerstens, 2020. "Input Efficiency Measures: A Generalized, Encompassing Formulation," Operations Research, INFORMS, vol. 68(6), pages 1836-1849, November.
    6. Kerstens, K., 1996. "Technical efficiency measurement and explanation of French urban transit companies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 30(6), pages 431-452, November.
    7. Kristiaan Kerstens & Philippe Vanden Eeckaut, 1999. "A new criterion for technical efficiency measures: non-monotonicity across dimensions axioms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(1), pages 45-59.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:cor:louvco:1995013. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alain GILLIS (email available below). General contact details of provider: https://edirc.repec.org/data/coreebe.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.