=========================== FDH: Input orientation =========================== The FDH estimator was first proposed by Deprins et al. (1984), and the mixed integer linear program (MILP) formulation of FDH was introduced by Tulkens (1993). Given the input variables :math:`X = [x_1, x_2, \cdots, x_n]` and output variables :math:`Y = [y_1, y_2, \cdots, y_n]`, we measure the input oriented efficiency for observation :math:`i` by solving the following MILP problem: .. math:: :nowrap: \begin{align*} \underset{\mathbf{\phi},\mathbf{\lambda}}min \quad \phi_i \\ \mbox{s.t.} \quad X\lambda \le \phi_i x_i \\ Y\lambda \ge y_i \\ \sum \lambda = 1 \\ \lambda_j \in \{0, 1\}, \forall j \end{align*} where :math:`\lambda = [\lambda_1, \lambda_2, \cdots, \lambda_n]` is the vector of intensity weights. The efficiency of observation :math:`i` is :math:`\phi^*_i`. The corresponding calculation processes are as follow: Example: Intput oriented FDH `[.ipynb] `_ -------------------------------------------------------------------------------------------------------------------- .. code:: python # import packages from pystoned import FDH from pystoned import dataset as dataset from pystoned.constant import ORIENT_IO, OPT_LOCAL # import the data provided with Tim Coelli’s Frontier 4.1 data = dataset.load_Tim_Coelli_frontier() # define and solve the FDH model model = FDH.FDH(data.y, data.x, orient=ORIENT_IO, yref=None, xref=None) model.optimize(OPT_LOCAL) # display the technical efficiency model.display_theta() # display the intensity variables model.display_lamda()