Undesirable outputs are often produced together with desirable outputs. This joint production of good and bad outputs brings about a difficulty for productivity measurement. Here we introduce a directional distance function and use it as a component in a new productivity index. This index, as an...

In this paper, the authors generalize the quantity rationing problem and assume that, rather than quantities being constrained, the decisionmaker has to spend a certain amount on some goods. They show that the cost function inferred from this model need not be quasi-concave in prices. The...

This note shows that the Nerlovian profit indicator may be aggregated over firms into an industry measure of profit efficiency. The note also provides conditions under which the technical component of the indicator may also be aggregated.