We discuss the influence of optical and electrical filtering on the performance of beat-noise limited balanced and single-ended direct detection of return-to-zero differential phase-shift keying (DPSK). Our simulations, supported by 40-Gb/s measurements, show that balanced DPSK detection outperforms both its single-ended equivalent and ON-OFF keying by similar to2.7 dB, with higher gains at narrower optical filter bandwidths.