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The cost of strikes in the Spanish mining sector: modelling an undesirable input with a distance function

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  • Ana Rodríguez-Álvarez

    ()

  • Ignacio Rosal
  • José Baños-Pino

Abstract

In some contexts, firms have to deal with certain elements or factors that affect the production outcome but which are non-market in nature and therefore do not have a price. In this paper we propose a new use of a production economics tool, the input distance function, to empirically measure the effects of these factors. Although we suggest a general use of this methodology, it has been developed in the context of measuring the effects of labor disputes in a particular declining industry, that of Spanish coal mining. We have estimated an equation system comprising an input distance function and cost share equations to calculate the cost generated by strikes. Copyright Springer Science+Business Media, LLC 2007

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Bibliographic Info

Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 27 (2007)
Issue (Month): 1 (February)
Pages: 73-83

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Handle: RePEc:kap:jproda:v:27:y:2007:i:1:p:73-83

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Web page: http://www.springerlink.com/link.asp?id=100296

Related research

Keywords: Duality theory; Input distance function; Shadow prices; Rent seeking; Coal sector; D72; F13; L71;

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References

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  11. Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-80, May.
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  13. Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
  14. Atkinson, Scott E & Cornwell, Christopher & Honerkamp, Olaf, 2003. "Measuring and Decomposing Productivity Change: Stochastic Distance Function Estimation versus Data Envelopment Analysis," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 284-94, April.
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Cited by:
  1. Nehring, Richard & Mishra, Ashok & Fernandez-Cornejo, Jorge & Hallahan, Charlie & Erickson, Kenneth & Harris, Michael, 2013. "Off-Farm Work and Economic Performance on Corn Farms," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151422, Agricultural and Applied Economics Association.
  2. Roberto Mosheim, 2013. "A shadow distance function decomposition of the environmental Kuznets curve: comparing the South China Sea and the Caribbean," Journal of Productivity Analysis, Springer, vol. 40(3), pages 457-472, December.
  3. Lota, Tamini D. & Bruno, Larue & West, Gale E., 2011. "Technical Efficiency, Environment Efficiency, Productivity and Beneficial Management Practices," Working Papers 102067, Structure and Performance of Agriculture and Agri-products Industry (SPAA).

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