Multiple-Output Production With Undesirable Outputs: An Application to Nitrogen Surplus in Agriculture
AbstractMany 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, where excess nitrogen production constitutes an important environmental problem.
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Bibliographic InfoPaper provided by EconWPA in its series Econometrics with number 0201001.
Length: 27 pages
Date of creation: 06 Jan 2002
Date of revision: 06 Jan 2002
Note: Type of Document - Tex (plain); prepared on IBM PC - PC-TEX; to print on HP/PostScript (A4); pages: 27 ; figures: included. Forthcoming in Journal of the American Statistical Association (Applications and Case Studies)
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Dairy farm; Efficiency; Environment; Longitudinal data; Stochastic frontier;
Other versions of this item:
- Fernandez C. & Koop G. & Steel M.F.J., 2002. "Multiple-Output Production With Undesirable Outputs: An Application to Nitrogen Surplus in Agriculture," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 432-442, June.
- Carmen Fernandez & Gary Koop & Mark F J Steel, 2004. "Multiple-output production with undesirable output: An application to nitrogen surplus in agriculture," ESE Discussion Papers 34, Edinburgh School of Economics, University of Edinburgh.
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
This paper has been announced in the following NEP Reports:
- NEP-AGR-2002-01-22 (Agricultural Economics)
- NEP-ALL-2002-01-22 (All new papers)
- NEP-EFF-2002-01-22 (Efficiency & Productivity)
- NEP-ENV-2002-01-22 (Environmental Economics)
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