Multiple-output production with undesirable output: An application to nitrogen surplus in agriculture

Carmen Fernandez, Mark Steel and Gary Koop

Edinburgh School of Economics Discussion Paper Series from Edinburgh School of Economics, University of Edinburgh

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.

Keywords: dairy farms; efficiency; environment; longitudinal data; Markov chain Monte Carlo (search for similar items in EconPapers)
Pages: 34
Date: 2002
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Citations: View citations in EconPapers (74)

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Related works:
Journal Article: Multiple-Output Production With Undesirable Outputs: An Application to Nitrogen Surplus in Agriculture (2002)
Working Paper: Multiple-Output Production With Undesirable Outputs: An Application to Nitrogen Surplus in Agriculture (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:edn:esedps:34

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