Tangency Capacity Notions Based upon the Pro?t and Cost Functions: A Non-Parametric Approach and a Comparison
AbstractThis 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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Bibliographic InfoPaper provided by IESEG School of Management in its series Working Papers with number 2009-ECO-05.
Length: 23 pages
Date of creation: Apr 2009
Date of revision:
economic capacity; pro?t function; cost function; directional distance function; tangency;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
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