Tangency capacity notions based upon the profit and cost functions: A non-parametric approach and a general comparison

Walter Briec; Kristiaan Kerstens; Diego Prior; Ignace Van de Woestyne

doi:10.1016/j.econmod.2010.03.004

Tangency capacity notions based upon the profit and cost functions: A non-parametric approach and a general comparison

Walter Briec, Kristiaan Kerstens, Diego Prior, Ignace Van de Woestyne

New Ventures, Management and Performance Group (NVMPg)

Research output: Contribution to journal › Article › Research › peer-review

4 Citations (Scopus)

Abstract

This contribution provides a way to define and compute a tangency notion of economic capacity based upon the relation between the various directional distance functions and the profit and cost functions using non-parametric technologies. A new result relating profit and cost function-based tangency capacity notions is established. © 2010 Elsevier B.V.

Original language	English
Pages (from-to)	1156-1166
Journal	Economic Modelling
Volume	27
Issue number	5
DOIs	https://doi.org/10.1016/j.econmod.2010.03.004
Publication status	Published - 1 Sep 2010

Keywords

Cost function
Directional distance function
Economic capacity
Profit function
Tangency

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AB - This contribution provides a way to define and compute a tangency notion of economic capacity based upon the relation between the various directional distance functions and the profit and cost functions using non-parametric technologies. A new result relating profit and cost function-based tangency capacity notions is established. © 2010 Elsevier B.V.

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KW - Directional distance function

KW - Economic capacity

KW - Profit function

KW - Tangency

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