In response to a question raised by Knox Lovell, we develop a method for estimating directional output distance functions with endogenously determined direction vectors based on exogenous normalization constraints. This is reminiscent of the Russell measure proposed by Färe and Lovell (J Econ Theory 19:150–162, 1978). Moreover it is related...
Productivity change after transition to an individual transferable quota (ITQ) management system is driven by exit of some vessels, entry of other vessels, and changes in productivity of existing vessels. Generally, it is thought that an ITQ system boosts productivity due to the exit of less productive vessels. However, ITQ...
There is continuing interest in the trend of costs associated with pollution abatement activities. We specify an environmental production technology to model the joint production of good and bad outputs. The joint production model calculates pollution abatement costs and identifies changes in these costs associated with: (1) technical change, (2)...
We review nonparametric estimation of efficiency and productivity, by which we mainly mean activity analysis, or data envelopment analysis (DEA). The review covers topics that we hope will be of special interest to those doing research in the realm of agriculture. We also include a brief appendix addressing nonparametric estimation...
Numerous studies have linked individual nutrient loadings from the Mississippi and Atchafalaya Rivers to
the growth of the hypoxic, or oxygen depleted, zone in the northern Gulf of Mexico. However, in the
discussion of policy to remediate Gulf hypoxia, it is beneficial for stakeholders and policymakers to obtain
a single...
In recent years, economists have started to move beyond calculating regulatory effects on a pollutant-by-pollutant basis since their interaction is important. In this study, we take up this issue. To allow for joint production of multiple pollutants and marketable output, we specify our technology using a directional distance function. This...
Jointly with kilowatt-hours (kWh), electric power plants also produce CO₂, NO[subscript x], and SO₂. In this paper, we apply an environmental production model based on data envelopment analysis (DEA) to compare the production of kWh under command-and-control regulation of the undesirable byproduct with tradable permit regulation of the byproduct. This...
With the advent of tradable permit programs for bad outputs (e.g., SO₂ emissions); concerns arose over whether the theoretical gains from trade would be realized. We will employ a methodology that calculates the potential gains accruing to coal-fired electric power plants from implementing a tradable permit program. The magnitude of...
In this paper we focus on the specification of revenue functions in their dual price space. We consider two distance functions—the Shephard output distance function and the directional output distance function—and define both in price space. The former is multiplicative in nature and satisfies homogeneity, whereas the latter is additive...
This study examines productivity change in the Mid-Atlantic surfclam and ocean quahog fishery, which has been managed since 1990 using Individual Transferable Ouotas (ITQ). Productivity change is estimated through a Malmquist index from 1981-2008, capturing change before and after implementation of the quota system. We then decompose the index to...