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Convex and Nonconvex Input-Oriented Technical and Economic Capacity Measures:Technical and Economic Capacity Measures: An Empirical Comparison

Author

Listed:
  • Kristiaan Kerstens

    (CNRS-LEM and IESEG School of Management)

  • Jafar Sadeghi

    (CNRS (LEM-UMR 9221) and IÉSEG School of Management)

  • Ignace Van de Woestyne

    (KU Leuven, Belgium)

Abstract

This contribution has two main objectives. First, it aims to compare empirically input- oriented technical and economic capacity notions. Second, it aims to compare these technical and economic capacity notions on both convex and nonconvex technologies. After defining these input-oriented technical and economic capacity notions, this contribution focuses on empirically comparing these different capacity utilization notions using a secondary data set. Anticipating two key empirical conclusions, we find that all these different capacity notions follow different distributions, and also that these distributions almost always differ under convex and nonconvex technologies.

Suggested Citation

  • Kristiaan Kerstens & Jafar Sadeghi & Ignace Van de Woestyne, 2017. "Convex and Nonconvex Input-Oriented Technical and Economic Capacity Measures:Technical and Economic Capacity Measures: An Empirical Comparison," Working Papers 2017-EQM-08, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:e201708
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    Citations

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    Cited by:

    1. Kristiaan Kerstens & Jafar Sadeghi & Ignace Van de Woestyne, 2019. "Plant Capacity and Attainability: Exploration and Remedies," Operations Research, INFORMS, vol. 67(4), pages 1135-1149, July.
    2. Cesaroni, Giovanni & Kerstens, Kristiaan & Van de Woestyne, Ignace, 2019. "Short- and long-run plant capacity notions: Definitions and comparison," European Journal of Operational Research, Elsevier, vol. 275(1), pages 387-397.

    More about this item

    Keywords

    Data Envelopment Analysis; Technology; Cost function; Capacity utilization;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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