Directional output distance functions: endogenous directions based on exogenous normalization constraints

Färe, Rolf; Grosskopf, Shawna; Whittaker, Gerald

doi:10.1007/s11123-012-0333-8

Cited by 129 publications

(74 citation statements)

References 9 publications

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“…Finally, for comparison purposes we also estimated inefficiencies using DEA. 30 Some studies have applied optimization methods to endogenously determine optimal directions; see e.g., Peyrache and Daraio (2012) and Färe et al (2013). However, this is outside the scope of this study.…”

Section: Figmentioning

confidence: 99%

Technical Synergies and Trade-Offs Between Abatement of Global and Local Air Pollution

Bonilla

Coria

Sterner

2017

Environ Resource Econ

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In this paper, we explore the synergies and tradeoffs between abatement of global and local pollution. We build a unique dataset of Swedish combined heat and power plants with detailed boiler-level data 2001-2009 on not only production and inputs but also on emissions of CO 2 and NO x . Both pollutants are regulated by strict policies in Sweden. CO 2 is subject to the European Union Emission Trading Scheme and Swedish carbon taxes; NO xas a precursor of acid rain and eutrophication-is regulated by a heavy fee. Using a quadratic directional output distance function, we characterize changes in technical efficiency as well as patterns of substitutability in response to the policies mentioned. The fact that generating units face a trade-off between the pollutants indicates the need for policy coordination.

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Section: Figmentioning

confidence: 99%

Technical Synergies and Trade-Offs Between Abatement of Global and Local Air Pollution

Bonilla

Coria

Sterner

2017

Environ Resource Econ

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“…Þas parameters, where g X i Ã ¼ 0 and P j2J Ã g Yj ¼ 1 for unit simplex (Färe et al, 2013). 3 We then define the DDF as follows.…”

Section: Directional Marginal Productivity Via Directional Distance Fmentioning

confidence: 99%

Directional marginal productivity: a foundation of meta-data envelopment analysis

Lee

2017

Journal of the Operational Research Society

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Differential characteristics of the production function represent elasticity measures and marginal rates of production technologies; in particular, marginal productivity (MP) plays an important role in economic theory and applications. This study provides a theoretical foundation of directional marginal productivity (DMP) supporting the meta-data envelopment analysis (meta-DEA) which measures the efficiency via marginal-profitmaximized orientation. In addition, the segmented marginal rate of technical substitution is developed based on DMP. In fact, DMP is developed to address finding the improving direction of the efficient firm on the frontier towards the marginal profit maximization. This approach, which emphasizes ''planning'' over ''efficiency evaluation'', forms the basis for transforming a typical ''ex-post'' DEA into an ''ex-ante'' DEA study. Two case studies show that the DMP provides an explicit span of directions for productivity improvement via a trade-off between these distinct directions.

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“…Other directional vectors could be chosen by the researcher such as g = (1,0), which gives the maximum feasible expansion in the good output while holding the bad output constant, or, g = (0,−1), which gives the maximum feasible contraction in the bad output, holding the good output fixed. We note that Atkinson and Tsionas (2015) have initiated the path towards endogenizing the directional vector in a stochastic setting using Bayesian methods, and Färe et al (2013) have implemented it in a non-parametric setting.…”

Section: Empirical Specification Of the Directional Output Distance Fmentioning

confidence: 99%

Global resilience to climate change: Examining global economic and environmental performance resulting from a global carbon dioxide market

Badau

Färe

Gopinath

2016

Resource and Energy Economics

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Directional output distance functions: endogenous directions based on exogenous normalization constraints

Cited by 129 publications

References 9 publications

Technical Synergies and Trade-Offs Between Abatement of Global and Local Air Pollution

Technical Synergies and Trade-Offs Between Abatement of Global and Local Air Pollution

Directional marginal productivity: a foundation of meta-data envelopment analysis

Global resilience to climate change: Examining global economic and environmental performance resulting from a global carbon dioxide market

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