A GENERALIZED DISTANCE FUNCTION AND THE ANALYSIS OF PRODUCTION EFFICIENCY

A generalization of Shephard's distance functions is proposed, extending the usefulness of distance functions in economic analysis. Applications to efficiency measurements and productivity analysis are presented. New indexes of productivity, and technical, allocative and scale efficiency are proposed and analyzed. Interpretation of these indexes in terms of ray-average cost, ray-average revenue, and cost-to-revenue ratio is discussed.


Issue Date:
1999
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/12601
Total Pages:
43
Series Statement:
Staff Paper 422




 Record created 2017-04-01, last modified 2017-08-23

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