Loss Distance Functions and Profit Function: General Duality Results

Juan Aparicio, Fernando Borras (), Jesus Pastor and José Zofío
Additional contact information
Fernando Borras: Department of Statistics, Mathematics and Computer Science, University Miguel Hernandez of Elche.

No 2015/06, Working Papers in Economic Theory from Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History)

Abstract: The concept of loss distance functions is introduced and compared with other functional representations of the technology including the Hölder metric distance functions (Briec and Lesourd (1999)), the directional distance functions due to Chambers et al. (1996, 1998), and the Shephard’s input and output distance functions as particular cases of the directional distance functions. Specifically, it is shown that, under appropriate normalization conditions defined over the (intrinsic) input and output prices, the loss distance functions encompass a wide class of well-known and much less known distance functions. Additionally, a dual correspondence is developed between the loss distance functions and the profit function, and it is shown that all previous dual connections appeared in the literature are special cases of this general correspondence. Finally, we obtain several interesting results assuming differentiability.

Keywords: Loss distance functions; directional distance functions; Hölder distance functions; duality; profit function. (search for similar items in EconPapers)
JEL-codes: C61 D01 D21 L25 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2015-11
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.uam.es/departamentos/economicas/analecon/especifica/mimeo/wp20156.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.uam.es/departamentos/economicas/analecon/especifica/mimeo/wp20156.pdf [307 Moved Temporarily]--> https://www.uam.es/departamentos/economicas/analecon/especifica/mimeo/wp20156.pdf [301 Moved Permanently]--> https://www.uam.es/Economicas/AnalisisEconomicoTeoriaHistoria/1234888140248.htm/especifica/mimeo/wp20156.pdf)

Related works:
Chapter: Loss Distance Functions and Profit Function: General Duality Results (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uam:wpaper:201506

Access Statistics for this paper

More papers in Working Papers in Economic Theory from Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History) Contact information at EDIRC.
Bibliographic data for series maintained by Andrés Maroto-Sánchez ( this e-mail address is bad, please contact ).