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Factor substitution in the production of library services: evidence from the North American research libraries

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  • Christopher J. Hammond

    (The Business School, University of Hull, UK)

Abstract

Economic analysis provides a rigorous foundation for the investigation of production activity, but relatively little attention has been given to service activities. This paper examines the technology of library services. Previous studies of library economics have focused mainly on economies of scale. The model proposed identifies scale economies, together with the substitution relationships among three categories of library staff, which are inferred from estimates of the cost function of 92 research libraries. For all categories of employees there is evidence of substitutability, but the demand for librarians is inelastic and the substitution possibilities weak. Student assistants are relatively strong substitutes for support staff and to a limited degree may be substituted for trained librarians. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Christopher J. Hammond, 2006. "Factor substitution in the production of library services: evidence from the North American research libraries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(8), pages 613-630.
    • Handle: RePEc:wly:mgtdec:v:27:y:2006:i:8:p:613-630
    DOI: 10.1002/mde.1296
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    References listed on IDEAS

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    1. Hammond, Christopher J., 1999. "The technology of library service provision: a cost function analysis of public library systems in the United Kingdom," Information Economics and Policy, Elsevier, vol. 11(3), pages 271-295, September.
    2. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
    3. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    4. J. R. Hicks, 1963. "The Theory of Wages," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-00189-7.
    5. DeBoer, Larry, 1992. "Economies of scale and input substitution in public libraries," Journal of Urban Economics, Elsevier, vol. 32(2), pages 257-268, September.
    6. Y. Mundlak, 1968. "Elasticities of Substitution and the Theory of Derived Demand," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 35(2), pages 225-236.
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    Cited by:

    1. William F. Stine, 2008. "An empirical analysis of the effect of volunteer labor on public library employment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(6), pages 525-538.

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