Koop, Gary: Multiple-Output Production with Undesirable Outputs: An Application to Nitrogen Surplus in Agriculture
World Conference Econometric Society, 2000, Seattle

Carmen Fernandez, University of Bristol
Gary Koop, University of Edinburgh
Mark F. J. Steel, University of Edinburgh
Multiple-Output Production with Undesirable Outputs: An Application to Nitrogen Surplus in Agriculture
Session: C-1-26  Friday 11 August 2000  by Koop, Gary
Many production processes yield both good outputs and undesirable ones ( e.g. pollutants). In this paper, we develop a generalization of a stochastic frontier model which is appropriate for such technologies. We discuss efficiency analysis and, in particular, define technical and environmental efficiency in the context of our model. Methods for carrying out Bayesian inference are developed and applied to a panel data set of Dutch dairy farms.


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