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Aggregation of Nerlovian profit indicator

Author

Listed:
  • Rolf Fare
  • Shawna Grosskopf
  • Valentin Zelenyuk

Abstract

This note shows that the Nerlovian profit indicator may be aggregated over firms into an industry measure of profit efficiency. The note also provides conditions under which the technical component of the indicator may also be aggregated.

Suggested Citation

  • Rolf Fare & Shawna Grosskopf & Valentin Zelenyuk, 2008. "Aggregation of Nerlovian profit indicator," Applied Economics Letters, Taylor & Francis Journals, vol. 15(11), pages 845-847.
  • Handle: RePEc:taf:apeclt:v:15:y:2008:i:11:p:845-847
    DOI: 10.1080/13504850600825584
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    References listed on IDEAS

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    1. R. G. Chambers & Y. Chung & R. Färe, 1998. "Profit, Directional Distance Functions, and Nerlovian Efficiency," Journal of Optimization Theory and Applications, Springer, vol. 98(2), pages 351-364, August.
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