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Tangency Capacity Notions Based upon the Pro?t and Cost Functions: A Non-Parametric Approach and a Comparison

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Author Info

  • Walter Briec

    (University of Perpignan, LAMPS)

  • Kristiaan Kerstens

    ()
    (CNRS-LEM (UMR 8179), IESEG School of Management)

  • Diego Prior

    (Universitat Autònoma de Barcelona, Spain)

Abstract

This contribution provides a way to de?ne and compute a tangency notion of economic capacity based upon the relation between the various directional distance functions and the pro?t and cost functions using non-parametric technologies. A new result relating pro?t and cost function-based tangency capacity notions is established.

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File URL: http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=14417027_2009-ECO-05_Briec_KK_Prior.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by IESEG School of Management in its series Working Papers with number 2009-ECO-05.

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Length: 23 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:ies:wpaper:e200905

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Keywords: economic capacity; pro?t function; cost function; directional distance function; tangency;

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