This paper adapts the models of Frisch (1965) and Murty and Russell (2006) on the modelling of undesirable outputs to a state-contingent setting with a specific emphasis on agricultural production technologies. TheChambers and Fa¨re (2008) approach to calculating shadowprices forDEAtechnologies is extended to encompass state-contingent production problems. These contributions are implemented empirically using a dataset obtained from a survey of Catalan farmers.
Chambers, G., Serra, T., & Oude Lansink, A. G. J. M. (2014). On the pricing of undesirable state-contingent outputs. European Review of Agricultural Economics, 41(3), 485-509. https://doi.org/10.1093/erae/jbu018