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Multiple-output production with undesirable output: An application to nitrogen surplus in agriculture

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Author Info
Carmen Fernandez
Gary Koop ()
Mark F J Steel

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Abstract

Many production processes yield both good outputs and undesirable ones (e.g. pollutants). In this paper, we develop a generalization of a stochastic frontier model which is appropriate for such technologies. We discuss efficiency analysis and, in particular, define technical and environmental efficiency in the context of our model. Methods for carrying out Bayesian inference are developed and applied to a panel data set of Dutch dairy farms.

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Publisher Info
Paper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number 34.

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Date of creation: Apr 2004
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Handle: RePEc:edn:esedps:34

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  1. Kelvin Balcombe & Iain Fraser & Jae H. Kim, 2006. "Estimating technical efficiency of Australian dairy farms using alternative frontier methodologies," Applied Economics, Taylor and Francis Journals, vol. 38(19), pages 2221-2236, October. [Downloadable!] (restricted)
  2. Mehmet Ulubasoglu & Nejat Anbarci, 2005. "Endogenous Liberalization and Within-Country Inequality: A Theoretical and Empirical Analysis," Economics Series 2005_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  3. David I. Stern, 2005. "The Effect of NAFTA on Energy and Environmental Efficiency in Mexico," Rensselaer Working Papers in Economics 0511, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
  4. Mary Graham, 2008. "Developing a Social Perspective to Farm Performance Analysis," Economics Series 2008_17, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
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  5. Efthymios G. Tsionas, 2006. "Inference in dynamic stochastic frontier models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(5), pages 669-676. [Downloadable!]
  6. William C. Horrace & Seth O. Richards, 2007. "A Monte Carlo Study of Efficiency Estimates from Frontier Models," Center for Policy Research Working Papers 97, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
  7. Kortelainen, Mika, 2008. "Estimation of semiparametric stochastic frontiers under shape constraints with application to pollution generating technologies," MPRA Paper 9257, University Library of Munich, Germany. [Downloadable!]
  8. Mary Graham, 2008. "Developing an Integrated Measure of Farm Performance," Economics Series 2008_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  9. Alfonso Flores-Lagunes & William C. Horrace & Kurt E. Schnier, 2006. "Identifying Technically Efficient Fishing Vessels: A Non-Empty, Minimal Subset Approach," Center for Policy Research Working Papers 78, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
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  10. David I. Stern, 2004. "Diffusion of Emissions Abating Technology," Rensselaer Working Papers in Economics 0420, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
  11. Margaret Brock & Monica Keneley, 2004. "Section 46: The High Court, Dawson and The Senate: A Review of the Recent Debate," Economics Series 2004_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  12. Jim Griffin & Mark Steel, 2005. "Bayesian Stochastic Frontier Analysis Using WinBUGS," Econometrics 0509004, EconWPA. [Downloadable!]
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  13. J. Griffin & M. Steel, 2008. "Flexible mixture modelling of stochastic frontiers," Journal of Productivity Analysis, Springer, vol. 29(1), pages 33-50, February. [Downloadable!] (restricted)
  14. Jose T.A.S. Ferreira & Mark F.J. Steel, 2004. "Model Comparison of Coordinate-Free Multivariate Skewed Distributions with an Application to Stochastic Frontiers," Econometrics 0404005, EconWPA. [Downloadable!]
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  15. William C. Horrace, 2003. "On Ranking and Selection from Independent Truncated Normal Distributions," Econometrics 0306009, EconWPA. [Downloadable!]
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  16. Gary Koop & Lise Tole, 2008. "What is the environmental performance of firms overseas? An empirical investigation of the global gold mining industry," Journal of Productivity Analysis, Springer, vol. 30(2), pages 129-143, October. [Downloadable!] (restricted)
    Other versions:
  17. Graham, Mary, 2008. "Biophysical Modelling and Performance Measurement," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6773, Australian Agricultural and Resource Economics Society. [Downloadable!]
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