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Nonparametric cost and revenue functions under constant economies of scale: A simplification for the single output or input case

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Author Info

  • Briec, Walter

    ()
    (UniversitĀ“e de Perpignan, Perpignan, France)

  • Kerstens, Kristiaan

    ()
    (IESEG School of Management, Lille, France)

  • Van de Woestyne, Ignace

    ()
    (Hogeschool-Universiteit Brussel (HUB), Belgium)

Abstract

This note shows how the linear programs needed to compute cost and revenue functions under constant returns to scale and a single output or input, respectively, can be replaced with a more efficient enumeration algorithm. An empirical illustration shows the gain in computer time one can obtain.

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File URL: https://lirias.hubrussel.be/bitstream/123456789/4852/1/11HRP12.pdf
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Bibliographic Info

Paper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2011/12.

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Length: 8 page
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:hub:wpecon:201112

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Keywords: nonparametric cost and revenue functions;

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  1. Bruno De Borger & Kristiaan Kerstens & Matthias Staat, 2008. "Transit Costs and Cost Efficiency: Bootstrapping Nonparametric Frontiers," Working Papers 2008-ECO-08, IESEG School of Management.
  2. Atkinson, Scott E. & Dorfman, Jeffrey H., 2005. "Feasible Estimation of Firm-Specific Allocative Inefficiency through Bayesian Numerical Methods," 2005 Annual meeting, July 24-27, Providence, RI 19402, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  4. Fare, Rolf & Grosskopf, Shawna & Lovell, C A Knox, 1983. " The Structure of Technical Efficiency," Scandinavian Journal of Economics, Wiley Blackwell, vol. 85(2), pages 181-90.
  5. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
  6. S. Illeris & G. Akehurst, 2001. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 1-4, January.
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