Productivity and Undesirable Outputs: A Directional Distance Function Approach
Undesirable outputs are often produced together with desirable outputs. This joint production of good and bad outputs brings about a difficulty for productivity measurement. Here we introduce a directional distance function and use it as a component in a new productivity index. This index, as an empirical example shows, seems to solve the problem caused by the joint production of good and bad outputs.
|Date of creation:||07 Nov 1995|
|Date of revision:||08 Nov 1995|
|Note:||Type of Document - WordPerfect 5.1; prepared on IBM-compatible PC; to print on HP LaserJet 3 (1Mb memory); pages: 18; figures: included within WP5.1 document. Single binary WP5.1 document 'put' by anonymous FTP. Visit our working paper Web page! Point your Web browser to|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
- Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-91, December.
- Briec, W., 1995. "A Graph Type Extension of Farrell Technical Efficiency Measure," G.R.E.Q.A.M. 95a28, Universite Aix-Marseille III.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
- Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-80, May.
- Fare, R. & Grosskopf, S. & Pasurka, C., 1986. "Effects on relative efficiency in electric power generation due to environmental controls," Resources and Energy, Elsevier, vol. 8(2), pages 167-184, June.
- Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
- Runar Brannlund & Yangho Chung & Rolf Fare & Shawna Grosskopf, 1995. "Emissions Trading and Profitability: The Swedish Pulp and Paper Industry," Others 9506001, EconWPA.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpmi:9511002. 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)
If references are entirely missing, you can add them using this form.