A PRIMAL-DUAL APPROACH TO NONPARAMETRIC PRODUCTIVITY ANALYSIS: THE CASE OF U.S. AGRICULTURE

Jean-Paul Chavas (jchavas@wisc.edu) and Thomas L. Cox

No 12613, Staff Papers from University of Wisconsin-Madison, Department of Agricultural and Applied Economics

Abstract: Nonparametric methods for measuring productivity indexes based on bounds for the underlying production technology are presented. Following Banker and Maindiratta, the lower bound is obtained from a primal approach while the upper bound corresponds to a dual approach to nonparametric production analysis. These nonparametric bounds are then used to estimate input-based and output- based distance functions. These radial measures provide the basis for measuring productivity indexes. Application to times series data on U.S. agriculture indicates a large gap between the primal lower bound and the dual upper bound. This generates striking differences between the primal and dual nonparametric productivity indexes.

Keywords: Productivity; Analysis (search for similar items in EconPapers)
Pages: 27
Date: 1994
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:wisagr:12613

DOI: 10.22004/ag.econ.12613

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