Productivity and Undesirable Outputs: A Directional Distance Function Approach
AbstractUndesirable outputs are often produced together with desirable outputs. This joint production of good and bad outputs brings about a difficulty for productivity measurement. Here we introduce a directional distance function and use it as a component in a new productivity index. This index, as an empirical example shows, seems to solve the problem caused by the joint production of good and bad outputs.
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Bibliographic InfoPaper provided by EconWPA in its series Microeconomics with number 9511002.
Length: 18 pages
Date of creation: 07 Nov 1995
Date of revision: 08 Nov 1995
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productivity & efficiency measurement; joint products; distance functions;
Find related papers by JEL classification:
- D1 - Microeconomics - - Household Behavior
- D2 - Microeconomics - - Production and Organizations
- D3 - Microeconomics - - Distribution
- D4 - Microeconomics - - Market Structure and Pricing
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- Subhash C. Ray & Kankana Mukherjee, 2007. "Efficiency in Managing the Environment and the Opportunity Cost of Pollution Abatement," Working papers 2007-09, University of Connecticut, Department of Economics.
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