Statistical inference in efficient production with bad inputs and outputs using latent prices and optimal directions
含不良投入与产出的生产效率推断：潜在价格与最优方向
Researchers employ the directional distance function (DDF) to estimate multiple-input and multiple-output production, firm inefficiency, and productivity growth. We relax restrictive assumptions by computing optimal directions subject to profit maximization and cost minimization, correct for the potential endogeneity of inputs and outputs, estimate latent prices for bad outputs, measure firms’ responses to shadow prices rather than actual prices, and introduce an unobserved…