New elasticity formula revolutionizes efficiency in multiple output industries!
The Hicks Elasticity of Substitution was derived from the input distance function instead of the production function. This new derivation is more versatile, handling technical inefficiency and multiple outputs. It is equal to the traditional elasticity under certain conditions. The new approach is linked to other elasticities like the Morishima and Antonelli Elasticities of Complementarity. Distance (technical efficiency) varies for these elasticities.