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Economies of scale: A survey of the empirical literature

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  • Junius, Karsten
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    Abstract

    If firms were animals rather than economic entities, a behavioral scientist trying to describe their traits would observe that firms tend to be found in herds and usually migrate towards the biggest watering holes. This paper surveys the literature on the questions why firms grow stronger with size, why they are found in herds, and what the effects are of meeting other herds around the watering holes. In economist-speak, I review the empirical literature on internal and external economies of scale. Internal scale economies arise on the level of a single firm. External scale economies arise on the level of an industry or a region. For each type of scale economies, I consider static and dynamic effects.

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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 813.

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    Date of creation: 1997
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    Handle: RePEc:kie:kieliw:813

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    Keywords: Economies of Scale; Empirical Studies;

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    Cited by:
    1. Junius, Karsten, 1997. "The determinants of urban concentration," Kiel Working Papers, Kiel Institute for the World Economy 835, Kiel Institute for the World Economy.
    2. Méjean, Aurélie & Hope, Chris, 2013. "Supplying synthetic crude oil from Canadian oil sands: A comparative study of the costs and CO2 emissions of mining and in-situ recovery," Energy Policy, Elsevier, Elsevier, vol. 60(C), pages 27-40.

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