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Tangency capacity notions based upon the profit and cost functions : a non-parametric approach and a general comparison

Author

Listed:
  • W. Briec
  • K. Kerstens

    (LEM - Lille - Economie et Management - Université de Lille, Sciences et Technologies - CNRS - Centre National de la Recherche Scientifique)

  • D. Prior
  • I. van de Woestyne

Abstract

This contribution provides a way to define and compute a tangency notion of economic capacity based upon the relation between the various directional distance functions and the profit and cost functions using non-parametric technologies. A new result relating profit and cost function-based tangency capacity notions is established.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • W. Briec & K. Kerstens & D. Prior & I. van de Woestyne, 2010. "Tangency capacity notions based upon the profit and cost functions : a non-parametric approach and a general comparison," Post-Print halshs-00507068, HAL.
    • Handle: RePEc:hal:journl:halshs-00507068
    DOI: 10.1016/j.econmod.2010.03.004
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    Cited by:

    1. Giovanni Cesaroni & Kristiaan Kerstens & Ignace Van de Woestyne, 2017. "A New Input-Oriented Plant Capacity Notion: Definition and Empirical Comparison," Pacific Economic Review, Wiley Blackwell, vol. 22(4), pages 720-739, October.
    2. Kerstens, Kristiaan & Sadeghi, Jafar & Van de Woestyne, Ignace, 2019. "Convex and nonconvex input-oriented technical and economic capacity measures: An empirical comparison," European Journal of Operational Research, Elsevier, vol. 276(2), pages 699-709.
    3. Bruno De Borger & Kristiaan Kerstens & Diego Prior & Ignace Van de Woestyne, 2013. "Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions," Applied Economics, Taylor & Francis Journals, vol. 45(24), pages 3529-3529, August.
    4. De Borger, Bruno & Kerstens, Kristiaan & Prior, Diego & Van de Woestyne, Ignace, 2009. "Static Efficiency Decompositions and Capacity Utilisation: Integrating Economic and Technical Capacity Notions. Technical Appendix," Working Papers 2009/31, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    5. Dale Squires & Kathleen Segerson, 2022. "Capacity and Capacity Utilization in Production Economics," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 24, pages 1001-1037, Springer.

    More about this item

    Keywords

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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