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Weak Disposability in Nonparametric Production Analysis: Reply to Färe and Grosskopf

Timo Kuosmanen () and Victor Podinovski

American Journal of Agricultural Economics, 2009, vol. 91, issue 2, pages 539-545

Abstract: Färe and Grosskopf (this issue) claim that a single abatement factor suffices for modeling weak disposability in nonparametric production models, and that the Kuosmanen (2005) technology that uses multiple abatement factors is larger than necessary. This article demonstrates by a numerical example that a single abatement factor does not suffice to capture all feasible production plans, and that its use leads to the violation of convexity, one of the maintained assumptions of the model. We also prove that the Kuosmanen technology is the correct minimum extrapolation technology under the stated axioms. Copyright Copyright 2009 Agricultural and Applied Economics Association.

Date: 2009

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American Journal of Agricultural Economics is edited by Peter Berck, Robert J. Myers, Ian M. Sheldon and B. Wade Brorsen

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