Fuzzy Frontiers of Production: Evidence of Persistent Inefficiency in Safety Expenditures

36 Pages Posted: 3 May 2004 Last revised: 27 Sep 2010

See all articles by Casey Ichniowski

Casey Ichniowski

Columbia Business School - Management; National Bureau of Economic Research (NBER)

Date Written: June 1984

Abstract

This study documents a strong inverse relationship between accident rates and production in a sample of eleven firms in the same narrowly defined industry classification. Given the detailed set of input controls and controls for plant-specific and time-specific factors used in the analysis, the study argues that a theoretical framework that describes firms as operating on well-defined production frontiers is not adequate for providing an entirely accurate interpretation of the basic empirical finding.Three elaborations to the basic production frontier framework are developed and used to interpret the accident-productivity relationship.

Suggested Citation

Ichniowski, Bernard E. (Casey), Fuzzy Frontiers of Production: Evidence of Persistent Inefficiency in Safety Expenditures (June 1984). NBER Working Paper No. w1366, Available at SSRN: https://ssrn.com/abstract=324010

Bernard E. (Casey) Ichniowski (Contact Author)

Columbia Business School - Management ( email )

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New York, NY 10027
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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