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|
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