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A Nonparametric Analysis of Production Models with Multidimensional Quality

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  • Angelo Zago

Abstract

This article 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 rather than ratios. The quality indicators may be used to evaluate firms’ output, taking into account the whole set of quality attributes. The paper explores how aggregate quality may vary with the production level and finds a trade-off between quantity and aggregate quality in wine grapes. Copyright 2007, Oxford University Press.

Suggested Citation

  • Angelo Zago, 2007. "A Nonparametric Analysis of Production Models with Multidimensional Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 751-764.
  • Handle: RePEc:oup:ajagec:v:91:y:2007:i:3:p:751-764
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2009.01268.x
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    Cited by:

    1. Shr, Yau-Huo & Zipp, Katherine, 2016. "Valuing complementarity between environmental goods and housing attributes with the benefit function: An application to flood hazards," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235961, Agricultural and Applied Economics Association.
    2. Aparicio, Juan & Borras, Fernando & Pastor, Jesus T. & Vidal, Fernando, 2013. "Accounting for slacks to measure and decompose revenue efficiency in the Spanish Designation of Origin wines with DEA," European Journal of Operational Research, Elsevier, vol. 231(2), pages 443-451.

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