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A Generalized Distance Function and the Analysis of Production Efficiency

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  • Jean-Paul Chavas
  • Thomas L. Cox

Abstract

A generalization of Shephard’s distance functions is proposed, extending the usefulness of distance functions in economic analysis. Applications to efficiency measurements and productivity analysis are presented. New indexes of productivity and technical, allocative, and scale efficiency are proposed and analyzed. Interpretation of these indexes in terms of ray-average cost, ray-average revenue, and cost-to-revenue ratio is discussed.

Suggested Citation

  • Jean-Paul Chavas & Thomas L. Cox, 1999. "A Generalized Distance Function and the Analysis of Production Efficiency," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 294-318, October.
  • Handle: RePEc:sej:ancoec:v:66:2:y:1999:p:294-318
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    References listed on IDEAS

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