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Quality Production and Quality Indicators in Intermediate Products

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  • Angelo Zago

    ()
    (Dipartimento di Scienze economiche (Università di Verona))

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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Bibliographic Info

Paper provided by University of Verona, Department of Economics in its series Working Papers with number 16.

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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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References

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  1. Robert G. Chambers, 2002. "Exact nonradial input, output, and productivity measurement," Economic Theory, Springer, vol. 20(4), pages 751-765.
  2. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
  3. Chambers, Robert G. & Weiss, Michael, 1992. "Revisiting minimum-quality standards," Economics Letters, Elsevier, vol. 40(2), pages 197-201, October.
  4. 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.
  5. John M. Antle, 2000. "No Such Thing as a Free Safe Lunch: The Cost of Food Safety Regulation in the Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 310-322.
  6. Zvi Griliches, 1991. "Hedonic Price Indexes and the Measurement of Capital and Productivity: Some Historical Reflections," NBER Chapters, in: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth, pages 185-206 National Bureau of Economic Research, Inc.
  7. Edward C. Jaenicke & Laura L. Lengnick, 1999. "A Soil-Quality Index and Its Relationship to Efficiency and Productivity Growth Measures: Two Decompositions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 881-893.
  8. Canali, Gabriele & Boccaletti, Stefano, 1998. "The Antitrust Policy In Italy: Learning From Some Food Cases," Conference Papers 14488, University of Minnesota, Center for International Food and Agricultural Policy.
  9. 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.
  10. Kling, Catherine L. & Bockstael, Nancy & Hanemann, W. Michael, 1987. "Estimating the Value of Water Quality Improvements in a Recreational Demand Framework," Staff General Research Papers 1594, Iowa State University, Department of Economics.
  11. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-91, December.
  12. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
  13. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
  14. Luis R. Murillo-Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, 02.
  15. 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.
  16. Luenberger David G., 1994. "Dual Pareto Efficiency," Journal of Economic Theory, Elsevier, vol. 62(1), pages 70-85, February.
  17. 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.
  18. 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.
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