Document Type

Article

Publication Date

1-1-2009

Abstract

Many production activities generate undesirable outputs in conjunction with the desirable outputs. In this paper we present the first estimates of a multiple-input, multiple-output directional distance function that relates good and bad inputs from home, School, and environment to good and bad outputs, measured as children's Cognitive and behavioral development. This household directional distance function is estimated using a balanced panel of 369 families from the National Longitudinal Survey of Youth-Child Sample for 1996 to 2000 using tale generalized method of moments within estimator and instrumental variables. We recover consistent partial effects for the time-invariant variables in a second-stage regression and estimate their corrected asymptotic standard errors, We then compute and examine productivity differences among households defined as the increase (decrease) in good (bad) outputs that families could attain with constant inputs if they were operating on the technological frontier. Our estimates suggest the presence of significant inefficiency among sample families that diminishes over time.

Publication Title

Southern Economic Journal

Comments

Erratum Due to an error during the printing process,the article "Multiple-Output Child Health Production Functions: The Impact of Time-Varying and Time-Invariant Inputs," by Mark D. Agee, Scott E. Atkinson, and Thomas D. Crocker, which appeared in the Southern Economic Journal, Volume 75(2) in October 2008, contained significant errors. The following is the corrected version of the article in its entirety.

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Economics Commons

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