A generalized distance function and the analysis of production efficiency

Authors
Chavas, JP Cox, TL
Citation
Jp. Chavas et Tl. Cox, A generalized distance function and the analysis of production efficiency, S ECON J, 66(2), 1999, pp. 294-318
Citations number
33
Categorie Soggetti
Economics
Journal title
SOUTHERN ECONOMIC JOURNAL
ISSN journal
00384038 → ACNP
Volume
66
Issue
2
Year of publication
1999
Pages
294 - 318
Database
ISI
SICI code
0038-4038(199910)66:2<294:AGDFAT>2.0.ZU;2-5
Abstract
A generalization of Shephard's distance functions is proposed, extending th e usefulness of distance functions in economic analysis. Applications to ef ficiency measurements and productivity analysis are presented. New indexes of productivity and technical, allocative, and scale efficiency an proposed and analyzed. Interpretation of these indexes in terms of ray-average cost , ray-average revenue, and cost-to-revenue ratio is discussed.