Tangency Capacity Notions Based upon the Pro?t and Cost Functions: A Non-Parametric Approach and a Comparison

Walter Briec, Kristiaan Kerstens and Diego Prior
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Walter Briec: University of Perpignan, LAMPS

No 2009-ECO-05, Working Papers from IESEG School of Management

Abstract: This contribution provides a way to de?ne and compute a tangency notion of economic capacity based upon the relation between the various directional distance functions and the pro?t and cost functions using non-parametric technologies. A new result relating pro?t and cost function-based tangency capacity notions is established.

Keywords: economic capacity; pro?t function; cost function; directional distance function; tangency (search for similar items in EconPapers)
JEL-codes: C61 D24 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2009-04
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (2)

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