SOME REMARKS ON MODIFIED FDH

One of the tools in theoretical and empirical work on the measurement of productive efficiency is the socalled Free Disposal Hull (FDH) meth od. As a result of its very generous character, many of the observatio ns belonging to an evaluated dataset are labeled efficient by this met hod. Modified FDH, similar in spirit as Andersen and Petersen's modifi ed Data Envelopment Analysis, may thus be used to discriminate between FDH-efficient units. We aim to show why particularly for FDH this met hod seems quite apt and may be called for as a valuable complementary tool to standard FDH analysis.