Productivity and Undesirable Outputs: A Directional Distance Function Approach
Yangho Chung and
Rolf Fare Additional contact information Yangho Chung: Southern Illinois Univ. at Carbondale
Rolf Fare: Southern Illinois Univ. at Carbondale
Abstract:
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.
Keywords:productivity & efficiency measurement; joint products; distance functions (search for similar items in EconPapers) JEL-codes:D1D2D3D4 (search for similar items in EconPapers) Date: 1995-11-07, Revised 1995-11-09 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 View list of referencesView citations in EconPapers