IDEAS home Printed from
   My bibliography  Save this paper

Multiple-Output Production With Undesirable Outputs: An Application to Nitrogen Surplus in Agriculture


  • Carmen Fernandez

    (University of St.Andrews)

  • Gary Koop

    (University of Glasgow)

  • Mark F.J. Steel

    (University of Kent at Canterbury)


Many production processes yield both good outputs and undesirable ones (e.g. pollutants). In this paper, we develop a generalization of a stochastic frontier model which is appropriate for such technologies. We discuss efficiency analysis and, in particular, define technical and environmental efficiency in the context of our model. Methods for carrying out Bayesian inference are developed and applied to a panel data set of Dutch dairy farms, where excess nitrogen production constitutes an important environmental problem.

Suggested Citation

  • Carmen Fernandez & Gary Koop & Mark F.J. Steel, 2002. "Multiple-Output Production With Undesirable Outputs: An Application to Nitrogen Surplus in Agriculture," Econometrics 0201001, EconWPA, revised 06 Jan 2002.
  • Handle: RePEc:wpa:wuwpem:0201001
    Note: Type of Document - Tex (plain); prepared on IBM PC - PC-TEX; to print on HP/PostScript (A4); pages: 27 ; figures: included. Forthcoming in Journal of the American Statistical Association (Applications and Case Studies)

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. Swinnen, Johan F. M. & Gow, Hamish R., 1999. "Agricultural credit problems and policies during the transition to a market economy in Central and Eastern Europe," Food Policy, Elsevier, vol. 24(1), pages 21-47, February.
    2. W. Kip Viscusi & William N. Evans, 1998. "Estimation Of Revealed Probabilities And Utility Functions For Product Safety Decisions," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 28-33, February.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Dairy farm; Efficiency; Environment; Longitudinal data; Stochastic frontier;

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpem:0201001. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.