We show that the Hotelling-Lau elasticity of substitution, an extension of the Allen-Uzawa elasticity to allow for optimal output-quantity (or utility) responses to changes in factor prices, inherits all of the failings of the Allen-Uzawa elasticity identified by Blackorby and Russell [1989...

We distinguish between intended production and residual generation and introduce the concept of by-production. We show that by-production provides the fundamental explanation for the positive correlation that is observed between intended production and residual generation. Most of the existing...

We provide an axiomatic foundation for efficiency measurement in the full space, referred to as “graph efficiency” measurement by Färe, Grosskopf, and Lovell [1985]. We posit four types of axioms: indication, monotonicity, independence of units of measurement, and continuity. We analyze six...

The paper examines three extensively used propositions regarding changes in utility and social welfare attributable to small changes in consumption bundles. It is shown that, though these propositions are valid when the changes in consumption bundles are ``infinitesimally small,''' none of the...

We distinguish between intended production and residual generation and introduce the concept of by-production. We show that by-production provides the fundamental explanation for the positive correlation that is observed between intended production and residual generation. Most of the existing...

Dmitruk and Koshevoy [1991 JET] provided a complete characterization of the class of technologies for which there exists an efficiency index satisfying the Fare-Lovell [1978 JET] axioms. The technologies implicit in the standard mathematical-programming methods of measuring efficiency, data...

Distinguishing between intended ("good") production and unintended or residual ("bad") generation, we introduce the concept of by-production. In by-production technologies, pollution is an output that satises a "costly disposability" assumption and violates standard free disposability with...

The paper examines three extensively used propositions regarding changes in utility and social welfare attributable to small changes in consumption bundles. It is shown that, though these propositions are valid when the changes in consumption bundles are ``infinitesimally small,''' none of the...

We provide an axiomatic foundation for efficiency measurement in the full space, referred to as "graph efficiency" measurement by Färe, Grosskopf, and Lovell [1985]. We posit four types of axioms: indication, monotonicity, independence of units of measurement, and continuity. We analyze six...