explicit solution is provided for the case when the felicity function is of the Epstein-Zin's type. …

We derive and empirically apply an input-oriented distance function based on the stochastic ray production function … suggested by L¨othgren (1997, 2000). We show that the derived ray-based input distance function is suitable for modeling … that are jointly present in various economic sectors. We also address a weakness of the stochastic ray function, namely its …