We explore the relationship between Shephard's input distance function and Luenberger's benefit function. We point out that the latter can be recognized in a production context as a directional input distance function which can exhaustively characterize production technologies under appropriate assumptions on input disposability. McFadden's composition rules for input sets and input distance functions are then extended to the directional input distance function. Working Paper 95-09 Scientific Article No. , Contribution No. from the Maryland Agricultural Experiment Station.
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