New Directions - Efficiency and Productivity
List of Figures ix
Preface xi
Introduction xiii
1. ESSAY 1: EFFICIENCY INDICATORS AND INDEXES 1
1 The Nerlovian Profit Indicator 2
2 The Revenue Efficiency Indicator 13
3 Cost Efficiency Indicator 22
4 Efficiency Indexes 27
5 From Indicators to Indexes 35
6 Hyperbolic Efficiency 39
7 Remarks on the Literature 42
8 Appendix: Proofs 42
2. ESSAY 2:
ENVIRONMENTAL PERFORMANCE 45
1 Good and Bad Outputs 46
2 Productivity with Bads 52
3 Environmental Quantity Index 56
4 Shadow Pricing Undesirable Outputs 60
5 Property Rights and Profitability 65
5.1 The Production Network with Externality 66
5.2 Common-pool Resource Technology 70
5.3 Property Rights, Profit and Externalities 71
5.4 Profits and common pool resource 75
5.5 Summary 77
NEW DIRECTIONS
6 Environmental Kuznets Curve 77
6.1 Methodology 79
6.2 Data and Results 82
6.3 Concluding Remarks 90
7 Remarks on the Literature 90
8 Appendix: Proofs 91
3. ESSAY 3: AGGREGATION ISSUES 93
1 The Fox Paradox 94
2 Koopmans' Theorem 96
3 Aggregating Indicators Across Firms 100
4 Johansen Aggregation 109
5 Aggregating Farrell Efficiency Indexes 115
6 Luenberger Productivity Indicators 119
7 Aggregation Across Inputs and Outputs 120
8 Aggregation and Decompositions 131
9 Performance in Japanese Banking 133
9.1 Introduction 133
9.2 The Japanese Banking System 134
9.3 Method 135
9.4 Data and Results 140
9.5 Summary 142
10 Remarks on the Literature 147
11 Appendix: Proofs 147
4. APPENDIX: AXIOMS OF PRODUCTION 151
1 Activity Analysis Model 157
Topic Index 169
Author Index 173
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