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Cover image for New directions:  efficiency and productivity
Title:
New directions: efficiency and productivity
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Publication Information:
Dordrecht : Kluwer Academic Publishers, 2004
ISBN:
9781402076619
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30000010046537 HD56 F27 2004 Open Access Book Book
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Summary

Summary

The format of this monograph is three essays, which we arrived at after spending a year writing over one hundred pages of what we even­ tually realized was a tedious reworking of old material. So we started over determined to write something new. At first we thought this approach might not work as a coherent mono­ graph, which is why we chose the essay format rather than chapters. As it turns out, there is a common thread--namely the directional distance function, which also gave us our title. As you shall see, the directional distance function includes traditional distance functions and efficiency measures as special cases providing a unifying framework for existing productivity and efficiency measures. It is also flexible enough to open up new areas in productivity and efficiency analysis such as environmen­ tal and aggregation issues. That we did not see this earlier is humbling; a student at a recent conference raised his hand and asked 'Why didn't you start with the directional distance function in the first place? In­ deed. This manuscript is intended to make up for our earlier oversights. This monograph contains papers coauthored with Wen-Fu Lee and Osman Zaim and one paper written by two former students, Hiroyuki Fukuyama and Bill Weber. We thank them for their contributions. An­ other former student, Jim Logan (Logi) read and critiqued the manu­ script for which we are grateful.


Table of Contents

List of Figuresp. ix
Prefacep. xi
Introductionp. xiii
1. Essay 1: Efficiency Indicators and Indexesp. 1
1 The Nerlovian Profit Indicatorp. 2
2 The Revenue Efficiency Indicatorp. 13
3 Cost Efficiency Indicatorp. 22
4 Efficiency Indexesp. 27
5 From Indicators to Indexesp. 35
6 Hyperbolic Efficiencyp. 39
7 Remarks on the Literaturep. 42
8 Appendix: Proofsp. 42
2. Essay 2: Environmental Performancep. 45
1 Good and Bad Outputsp. 46
2 Productivity with Badsp. 52
3 Environmental Quantity Indexp. 56
4 Shadow Pricing Undesirable Outputsp. 60
5 Property Rights and Profitabilityp. 65
5.1 The Production Network with Externalityp. 66
5.2 Common-pool Resource Technologyp. 70
5.3 Property Rights, Profit and Externalitiesp. 71
5.4 Profits and common pool resourcep. 75
5.5 Summaryp. 77
6 Environmental Kuznets Curvep. 77
6.1 Methodologyp. 79
6.2 Data and Resultsp. 82
6.3 Concluding Remarksp. 90
7 Remarks on the Literaturep. 90
8 Appendix: Proofsp. 91
3. Essay 3: Aggregation Issuesp. 93
1 The Fox Paradoxp. 94
2 Koopmans' Theoremp. 96
3 Aggregating Indicators Across Firmsp. 100
4 Johansen Aggregationp. 109
5 Aggregating Farrell Efficiency Indexesp. 115
6 Luenberger Productivity Indicatorsp. 119
7 Aggregation Across Inputs and Outputsp. 120
8 Aggregation and Decompositionsp. 131
9 Performance in Japanese Bankingp. 133
9.1 Introductionp. 133
9.2 The Japanese Banking Systemp. 134
9.3 Methodp. 135
9.4 Data and Resultsp. 140
9.5 Summaryp. 142
10 Remarks on the Literaturep. 147
11 Appendix: Proofsp. 147
4. Appendix: Axioms of Productionp. 151
1 Activity Analysis Modelp. 157
Topic Indexp. 169
Author Indexp. 173
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