In 1975 the United States Environmental Protection Agency initiated an historic process of regulatory reform, now known as the Emissions Trading Program. For nonuniformly-mixed pollutants, such as sulfur dioxides, air quality is a function not only of the level of emissions, but their location...

Econometric estimation of allocative and technical efficiency has frequently been carried out using a shadow cost function and its associated share or demand equations. Since the problem is formulated in terms of shadow prices, the effect of allocative inefficiency on input usage must be...

Econometric models to estimate allocative and technical inefficiency include stochastic shadow distance frontiers, shadow cost frontiers, and shadow profit frontiers. In these models, the cost savings from eliminating both sources of inefficiency is often reported in total and then decomposed...