Performance measurement and joint production of intended and unintended outputs

Abstract The generation of unintended residuals when producing intended outputs is the key factor behind our serious problems with pollution. way this joint production modelled therefore crucial importance for understanding and empirical efforts to change economic activities in order reduce harmful residuals. Estimation efficiency productivity both has emerged as an important research strand. most popular models field are based on weak disposability two types together null-jointness introduced by Shephard. purpose paper show that these model built some questionable assumptions. An alternative theory Frisch introduces technical jointness case output unavoidable. materials balance physical laws tells us material inputs used modelling must reflect this. occurs simultaneously. It maximisation given engineers striving at achieve. functions linked through common use inputs. However, separate can be estimated because independent ones vice versa, facilitating calculating measures using non-parametric DEA methods.