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Journal of Economics

, Volume 119, Issue 1, pp 65–90 | Cite as

Congestion in production correspondences

  • Walter Briec
  • Kristiaan Kerstens
  • Ignace Van de Woestyne
Article

Abstract

This contribution aims to detect and measure more severe forms of congestion than the ones that could hitherto be evaluated in axiomatic production theory. To this end, we define a new S-disposal axiom, a kind of limited strong disposability. This S-disposal assumption leads to a duality result between a general input directional distance function and the cost function that is weaker than the ones established in the literature. Finally, we indicate how finite data sets can or cannot be rationalized by a minimal technology compatible with S-disposal, thereby generalizing the nonparametric weak axiom of cost minimization test.

Keywords

Distance function Cost function Duality Congestion WACM 

JEL Classification

C61 D24 

Supplementary material

712_2016_484_MOESM1_ESM.pdf (422 kb)
Supplementary material 1 (pdf 422 KB)

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Copyright information

© Springer-Verlag Wien 2016

Authors and Affiliations

  • Walter Briec
    • 1
  • Kristiaan Kerstens
    • 2
  • Ignace Van de Woestyne
    • 3
  1. 1.University of Perpignan, LAMPSPerpignanFrance
  2. 2.CNRS-LEM (UMR 9221)IESEG School of ManagementLilleFrance
  3. 3.KU LeuvenResearch unit MEESBrusselBelgium

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