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Benefit and Distance Functions

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Chambers, Robert G., Chung, Yangho, Färe, Rolf·1996·Journal of Economic Theory

Abstract

Abstract We explore the relationship between R. W. Shephard's input distance function (“Cost and Production Functions,” Princeton Univ. Press, Princeton, 1953) and D. G. Luenberger's benefit function ( J. Math. Econ. 21 (1992a), 461–481). We point out that the latter can be recognized in a production context as a directional input distance function which can exhaustively characterize technologies in both price and input space. D. McFadden's (Cost, revenue, and profit functions, in “Production Economics: A Dual Approach to Theory and Applications, “North-Holland/Elsevier, New York, 1978) composition rules for input sets and input distance functions are then extended to the directional input distance function. Journal of Economic Literature Classification Numbers : D21, D24, D29.

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Metadata

Authors
Chambers, R. G., Chung, Y., & Färe, R.
Venue
Journal of Economic Theory
Publisher
Elsevier BV
Published
1996-08
Volume
70
Issue
2
Pages
407-419
ISSN
0022-0531 (ISSN-L)
OpenAlex
W2022041746
Cited by
1,408
References
0
FWCI
10.97
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Benefit and Distance Functions. https://app.cochat.ai/papers/10.1006/jeth.1996.0096
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Chambers, R. G., Chung, Y., & Färe, R. (1996). Benefit and Distance Functions. Journal of Economic Theory. https://doi.org/10.1006/jeth.1996.0096

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