A Generalized Distance Function and the Analysis of Production Efficiency
Southern Economic JournalPublished 1 October 1999Open access
Jean‐Paul Chavas, Thomas L. Cox
Citations85
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Abstract
A generalization of Shephard's distance functions is proposed, extending the usefulness of distance functions in economic analysis. Applications to efficiency measurements and productivity analysis are presented. New indexes of productivity, and technical, allocative and scale efficiency are proposed and analyzed. Interpretation of these indexes in terms of ray-average cost, ray-average revenue, and cost-to-revenue ratio is discussed.
Keywords
Decision SciencesEconomics, Econometrics and Finance
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