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Production Economics in Spatial Analysis

In: Handbook of Production Economics

Author

Listed:
  • Luis Orea

    (University of Oviedo)

  • Inmaculada C. Álvarez

    (Universidad Autónoma de Madrid)

Abstract

This chapter summarizes the empirical literature that uses a spatial analysis framework in production economics. This literature takes advantage of the spatial dimension of the data to capture the spillover effects of neighboring production units. In the first three sections, we outline standard spatial extensions of the neoclassical production models aiming to measure knowledge spillovers, the effect of network inputs, and economies of agglomeration. The next four sections outline the literature that on one hand examines returns to scale and productivity growth from both internal and external inputs, and on the other hand summarize the spatial econometric techniques used in frontier and non-frontier analyses of firms’ production. The last section includes a set of final remarks regarding the application of spatial econometric techniques in production analyses.

Suggested Citation

  • Luis Orea & Inmaculada C. Álvarez, 2022. "Production Economics in Spatial Analysis," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 35, pages 1379-1409, Springer.
    • Handle: RePEc:spr:sprchp:978-981-10-3455-8_35
    DOI: 10.1007/978-981-10-3455-8_35
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