By Rolf Färe
`Most researchers in potency size might be acquainted with the paintings of Rolf Färe and Shawna Grosskopf, who've performed a lot to make sure that the advance of construction thought has been on a safe starting place, and that idea is associated with functional program. This admirably concise e-book is in a feeling a precis in their paintings so far. The authors are to be congratulated on generating a good equipped and good written e-book. ... i might unreservedly suggest this booklet for professional graduate classes and learn scholars. ... will certainly be a massive stimulus for researchers within the future.'
Journal of the Opereational learn Society, 48:6 (1997)
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Extra info for Intertemporal Production Frontiers: With Dynamic DEA
The data sources are primary data for the pulp and paper industry gathered by Statistics Sweden and the Swedish Environmental Protection Board. The part used here contains annual information from 41 pulp mills for the period 1986-90. It includes information on quantities, both Static Production Structure 35 in physical and monetary terms, of sulphate pulp, sulphite pulp and mechanical pulp. Data on emissions of BOD, COD and suspended solids as well as factor inputs of labor, capital, electricity and materials (fibre), both in physical and monetary terms are also provided.
These are extremely useful representations of technology in their own right and very useful in the construction of indexes. In fact the distance functions themselves may be thought of as indexes (or aggregator functions). 1, in keeping with our axiomatic approach, we introduce the distance functions and show which properties they inherit from the parent technologies introduced in Chapter 2. Next we turn to the general definition of productivity as an index consisting of the ratio of output to input.
Our next task is to look inside the box and to think of it as consisting of subtechnologies or subprocesses. The subtechnologies are connected in a network to form the overall frontier or reference technology. Looking at production as a series of subprocesses allows us to explicitly model intermediate inputs or products. The type of model introduced here will serve as the basis for our vintage technologies and our dynamic models. To keep things simple and fairly concrete, we restrict our network to include only three subtechnologies.