Economies of Scale in Multi-product Firms: An Empirical Analysis
AbstractThis paper presents new evidence on scale economies in multiproduct firms. Previous studies are limited in view of r ecent advances in the theory of the multiproduct firm. The water util ity is chosen here as a multiproduct firm providing multiple services to various classes of customers with spatial variation. A translog m ultiproduct cost function is estimated, based on duality between tran sformation and cost functions. The paper analyzes overall, as well as product-specific, scale economies. It also discusses ray average cos t curves and derives the M locus which provides useful information on scope economies and the cost-minimizing number of firms. Copyright 1987 by The Review of Economic Studies Limited.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 54 (1987)
Issue (Month): 214 (May)
Contact details of provider:
Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Takuya Urakami, 2005. "Identifying scale economies for different types of water supply organizations in Japan," ERSA conference papers ersa05p370, European Regional Science Association.
- Mehdi Farsi & Massimo Filippini, 2008.
"Effects of ownership, subsidization and teaching activities on hospital costs in Switzerland,"
John Wiley & Sons, Ltd., vol. 17(3), pages 335-350.
- Medhi Farsi & Massimo Filippini, 2006. "Effects of ownership, subsidization and teaching activities on hospital costs in Switzerland," Quaderni della facoltÃ di Scienze economiche dell'UniversitÃ di Lugano 0606, USI Università della Svizzera italiana.
- NAUGES CÃ©line & VAN DEN BERG Caroline, 2007.
"How "natural" are natural monopolies in the water supply and sewerage sector? Case studies from developing and transition economies,"
LERNA Working Papers
07.05.226, LERNA, University of Toulouse.
- Nauges, Celine & van den Berg, Caroline, 2007. "How"natural"are natural monopolies in the water supply and sewerage sector ? Case studies from developing and transition economies," Policy Research Working Paper Series 4137, The World Bank.
- Tsegai, Daniel W. & Linz, Teresa & Kloos, Julia, 2009. "Economic analysis of water supply cost structure in the Middle Olifants sub-basin of South Africa," Discussion Papers 49926, University of Bonn, Center for Development Research (ZEF).
- Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, vol. 17(3-4), pages 233-244, September.
- Førsund, Finn R. & Hjalmarsson, Lennart, 2002.
"Are all Scales Optimal in DEA? Theory and Empirical Evidence,"
Working Papers in Economics
66, University of Gothenburg, Department of Economics.
- Finn Førsund & Lennart Hjalmarsson, 2004. "Are all Scales Optimal in DEA? Theory and Empirical Evidence," Journal of Productivity Analysis, Springer, vol. 21(1), pages 25-48, January.
- Lennart Hjalmarsson & Finn R. Førsund, 2002. "Are all scales optimal in Dea? Theory and empirical evidence," ICER Working Papers 14-2002, ICER - International Centre for Economic Research.
- Romano, Giulia & Guerrini, Andrea, 2011. "Measuring and comparing the efficiency of water utility companies: A data envelopment analysis approach," Utilities Policy, Elsevier, vol. 19(3), pages 202-209.
- Linz, Teresa & Tsegai, Daniel W., 2009. "Industrial Water Demand analysis in the Middle Olifants sub-basin of South Africa: The case of Mining," Discussion Papers 49927, University of Bonn, Center for Development Research (ZEF).
- Harimaya, Kozo, 2008. "Impact of nontraditional activities on scale and scope economies: A case study of Japanese regional banks," Japan and the World Economy, Elsevier, vol. 20(2), pages 175-193, March.
- Dono, Gabriele & Giraldo, Luca, 2011. "Cost Analysis for Water Distribution in Agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114435, European Association of Agricultural Economists.
- Kristof De Witte & Elbert Dijkgraaf, 2007. "Mean and Bold?," Tinbergen Institute Discussion Papers 07-092/3, Tinbergen Institute.
- Kuo, Jenn-Shyong & Ho, Yi-Cheng, 2008. "The cost efficiency impact of the university operation fund on public universities in Taiwan," Economics of Education Review, Elsevier, vol. 27(5), pages 603-612, October.
- Peeter Peda & Giuseppe Grossi & Margo Liik, 2013. "Do ownership and size affect the performance of water utilities? Evidence from Estonian municipalities," Journal of Management and Governance, Springer, vol. 17(2), pages 237-259, May.
- World Bank, 2006. "Poverty, Growth, and Environment in Brazil : Spatial Insights for Policymaking," World Bank Other Operational Studies 12852, The World Bank.
- H. Youn Kim, 2003. "Intertemporal production and asset pricing: a duality approach," Oxford Economic Papers, Oxford University Press, vol. 55(2), pages 344-379, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.