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Weak disposability in nonparametric production analysis: reply to Fare and Grosskopf
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Kuosmanen, Timo and Podinovski, Victor V. (2009) Weak disposability in nonparametric production analysis: reply to Fare and Grosskopf. American Journal of Agricultural Economics, Vol.91 (No.2). pp. 539-545. doi:10.1111/j.1467-8276.2008.01238.x ISSN 0002-9092.
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Official URL: http://dx.doi.org/10.1111/j.1467-8276.2008.01238.x
Abstract
Fare and Grosskopf (this issue) claim that a single abatement factor suffices for modeling weak disposability in nonparametric production models, and that the Kuosmanen (2005) technology that uses multiple abatement factors is larger than necessary. This article demonstrates by a numerical example that a single abatement factor does not suffice to capture all feasible production plans, and that its use leads to the violation of convexity, one of the maintained assumptions of the model. We also prove that the Kuosmanen technology is the correct minimum extrapolation technology under the stated axioms.
Item Type: | Journal Article | ||||
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Subjects: | S Agriculture H Social Sciences > HC Economic History and Conditions |
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Divisions: | Faculty of Social Sciences > Warwick Business School | ||||
Journal or Publication Title: | American Journal of Agricultural Economics | ||||
Publisher: | Wiley-Blackwell Publishing, Inc. | ||||
ISSN: | 0002-9092 | ||||
Official Date: | May 2009 | ||||
Dates: |
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Volume: | Vol.91 | ||||
Number: | No.2 | ||||
Number of Pages: | 7 | ||||
Page Range: | pp. 539-545 | ||||
DOI: | 10.1111/j.1467-8276.2008.01238.x | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Restricted or Subscription Access |
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