Theory and Application of Directional Distance Functions

By R. Färe, Shawna Grosskopf. 2000

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Marginal CO2 abatement costs: Findings from alternative shadow price estimates for Shanghai industrial sectors (2015, background): “The shadow prices of undesirable outputs are derived from the duality relationship between distance function and revenue, cost or profit function, and distance function provides a characterization of technological relationship between inputs and outputs (Färe and Grosskopf, 2000).”
Capacity utilization measures and excess capacity in multi-product privatized fisheries (2002, methodology): “Färe and Grosskopf (2000) have recently proposed a more general DEA method for capacity and capacity utilization using the directional distance function.”
Probabilistic characterization of directional distances and their robust versions (2012, methodology): “The hyperbolic graph efficiency measure, proposed by Färe et al. (1985), Färe and Grosskopf (2000), provides an alternative measure of the distance of a firm (x, y) to the efficient frontier.”
Modelling pollution-generating technologies in performance benchmarking: Recent developments, limits and future prospects in the nonparametric framework (2016, methodology): “This approach combines the mass/energy identity equation and the G-disposability developed in Chung (1996) around the directional distance function (DDF; see Färe and Grosskopf, 2000 for a discussion of the theory and application of the DDF).”