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Quality Production and Quality Indicators in Intermediate Products

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Author Info
Angelo Zago () (Dipartimento di Scienze economiche (Università di Verona))

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Abstract

The paper proposes a methodology to measure the characteristics of intermediate products when quality is multidimensional. It uses a general representation of the multioutput technology via directional distance functions and constructs quality indicators based on differences. The quality indicators may be used to evaluate firms’ output taking into account the whole set of quality attributes. It explores the relationships among the different quality attributes and the yields by a systematic investigation of the disposability properties of the technology. In addition, it shows how aggregate quality may vary with the production level.

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File URL: http://dse.univr.it/RePEc/ver/Wpaper/WP16.pdf
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Publisher Info
Paper provided by Università di Verona, Dipartimento di Scienze economiche in its series Working Papers with number 16.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 104
Date of creation: Dec 2004
Date of revision:
Handle: RePEc:ver:wpaper:16

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Related research
Keywords: Quality indicators multidimensional quality performance measures DEA.

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Find related papers by JEL classification:
C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity

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  2. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-91, December. [Downloadable!] (restricted)
  3. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481. [Downloadable!] (restricted)
  4. Grosskopf, S. & Margaritis, D. & Valdmanis, V., 1995. "Estimating output substitutability of hospital services: A distance function approach," European Journal of Operational Research, Elsevier, vol. 80(3), pages 575-587, February. [Downloadable!] (restricted)
  5. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November. [Downloadable!] (restricted)
  6. Chambers, Robert G. & Weiss, Michael, 1992. "Revisiting minimum-quality standards," Economics Letters, Elsevier, vol. 40(2), pages 197-201, October. [Downloadable!] (restricted)
  7. Luenberger David G., 1994. "Dual Pareto Efficiency," Journal of Economic Theory, Elsevier, vol. 62(1), pages 70-85, February. [Downloadable!] (restricted)
  8. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June. [Downloadable!] (restricted)
  9. Antle, John M, 2000. " No Such Thing as a Free Safe Lunch: The Cost of Food Safety Regulation in the Meat Industry," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(2), pages 310-22, May. [Downloadable!] (restricted)
  10. Fare, R. & Grosskopf, S. & Roos, P., 1995. "Productivity and quality changes in Swedish pharmacies," International Journal of Production Economics, Elsevier, vol. 39(1-2), pages 137-144, April. [Downloadable!] (restricted)
  11. Blackorby, Charles & Donaldson, David, 1980. "A Theoretical Treatment of Indices of Absolute Inequality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 107-36, February. [Downloadable!] (restricted)
  12. Luis R. Murillo-Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Blackwell Publishing, vol. 18(1), pages 33-77, 02. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
  14. Kling, Catherine L. & Bockstael, Nancy & Michael, W., 2005. "Estimating the Value of Water Quality Improvements in a Recreational Demand Framework," Staff General Research Papers 12334, Iowa State University, Department of Economics.
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