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Productivity change with bad outputs: Data envelopment analysis aggregate joint production vs. data envelopment analysis input-output models

Author

Listed:
  • Färe, Rolf
  • Grosskopf, Shawna
  • Pasurka, Carl A.

Abstract

Leontief (1970) was the first paper to incorporate production of undesirable by-products into an input-output framework. Prieto and Zofío (2007) introduced multiple input-output tables into an activity analysis model that assumed bad outputs were freely disposable. In this paper, we extend the Prieto and Zofío model to include the production of a bad output that is not freely disposable. The model is operationalized using a set of input-output tables for 1990–2007 from Denmark. These results are compared with productivity change using aggregate data in a joint production model for Denmark.

Suggested Citation

  • Färe, Rolf & Grosskopf, Shawna & Pasurka, Carl A., 2026. "Productivity change with bad outputs: Data envelopment analysis aggregate joint production vs. data envelopment analysis input-output models," European Journal of Operational Research, Elsevier, vol. 329(2), pages 703-717.
    • Handle: RePEc:eee:ejores:v:329:y:2026:i:2:p:703-717
    DOI: 10.1016/j.ejor.2025.07.019
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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