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Tangency Capacity Notions Based upon the Pro?t and Cost Functions: A Non-Parametric Approach and a Comparison

Author

Listed:
  • Walter Briec

    (University of Perpignan, LAMPS)

  • Kristiaan Kerstens

    () (CNRS-LEM (UMR 8179), IESEG School of Management)

  • Diego Prior

    (Universitat Autònoma de Barcelona, Spain)

Abstract

This contribution provides a way to de?ne and compute a tangency notion of economic capacity based upon the relation between the various directional distance functions and the pro?t and cost functions using non-parametric technologies. A new result relating pro?t and cost function-based tangency capacity notions is established.

Suggested Citation

  • Walter Briec & Kristiaan Kerstens & Diego Prior, 2009. "Tangency Capacity Notions Based upon the Pro?t and Cost Functions: A Non-Parametric Approach and a Comparison," Working Papers 2009-ECO-05, IESEG School of Management.
  • Handle: RePEc:ies:wpaper:e200905
    as

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    File Function: First version, 2009
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    economic capacity; pro?t function; cost function; directional distance function; tangency;

    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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