Since Akerlof’s theory of lemons, economists have viewed quality uncertainty as an informational advantage for sellers. Drawing on frontier techniques, we propose in this paper a simple method for measuring inefficiency of both sellers and buyers in markets for goods with different levels of...

In this paper, we study the smoking behavior of students aged from 18 to 25 using four cross-section data sets collected in France from 1997 to 2006. We focus on the role played by student income and parental resources. We find that both the probability of smoking and the number of cigarettes...

In this paper, we study the smoking behavior of students aged from 18 to 25 using four cross-section data sets collected in France from 1997 to 2006. We focus on the role played by student income and parental resources. We find that both the probability of smoking and the number of cigarettes...

This study estimates productivity gains and their distribution among inputs and outputs for American industries over the period 1987-2011 using the traditional surplus accounting method. Total Factor Productivity (TFP) change is traditionally defined as the growth rate of output minus the growth...

The paper addresses the decomposition of firms’ profit inefficiency (i.e. the difference between the observed profit and the maximal profit that could have been earned) in a context of output price uncertainty. More precisely, we separate this inefficiency into price expectation error,...

In this paper we extend the taxonomy on inner and outer approximations to a technology by assuming that price data are not available. Mimicking Varian [Econometrica, 52(3) (1984) 579] we introduce a Weak Axiom of Shadow Profit Maximization (WASPM) to test if observed production plans are...

Policy makers as well as land users in developed countries are willing to promote new agricultural practices that are more environmentally friendly. This can be possible notably among several others by reducing chemical utilization. For instance in France, the agreement of the “Grenelle de...

The model used, GAMEDE, is a “whole-farm” dynamic model composed of 6 biophysical modules and a management system (Vayssières et al, 2009). This simulation model gives accurate predictions for various sustainability indicators (labor, energy consumption, production, nitrogen leaks to the...

A rather simple but crucial question in economics and management is why one firm makes more profit than another. However the answer remains unclear because of the large range of factors that might explain differential profit. In this paper we propose a decomposition of the profit differential...