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

Carmen Fernandez, Gary Koop () and Mark Steel ()
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Carmen Fernandez: University of St.Andrews

Econometrics from EconWPA

Abstract: 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.

Keywords: Dairy farm; Efficiency; Environment; Longitudinal data; Stochastic frontier (search for similar items in EconPapers)
JEL-codes: C11 C33 Q12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-eff and nep-env
Date: 2002-01-06, Revised 2002-01-06
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)
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Related works:
Working Paper: Multiple-output production with undesirable output: An application to nitrogen surplus in agriculture (2004)
Journal Article: Multiple-Output Production With Undesirable Outputs: An Application to Nitrogen Surplus in Agriculture (2002)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpem:0201001

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