B. Deborger et al., 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, 105(3), 1998, pp. 427-446
Citations number
54
Categorie Soggetti
Management,"Operatione Research & Management Science","Operatione Research & Management Science
This paper evaluates a variety of technical efficiency measures based
on a given nonparametric reference technology, the free disposal hull
(FDH), Specifically, we consider the radial measure of Debreu (1951)/F
arrell (1957) and the nonradial measures of Fare (1975), Fare and Love
ll (1978) and Zieschang (1984). Furthermore, input-based, output-based
, and graph efficiency versions of these four measures are computed. T
heoretical consideration as to the best choice among these alternative
measures is inconclusive; therefore, we examine this problem from an
empirical viewpoint. Calculating thirteen different measures of techni
cal efficiency for a sample of US banks, we compare the measures' effi
ciency distributions and rankings, paying particular attention to how
well the radial measure approximates its nonradial alternatives. (C) 1
998 Elsevier Science B.V.