Aggregation of Scale Elasticities Across Firms
AbstractIn this paper we propose new aggregate or ‘group’ primal and dual scale elasticity measures of an economic system (e.g., industry consisting of several firms, etc.). The main contribution of the paper is that we show under what assumptions a formal relationship between these new aggregate scale elasticity measures and the individual scale elasticities can be established. The derivations are based on the principles of economic optimization, and in particular on the duality theory of Shephard (1953) and the aggregation theory of Koopmans (1957).
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 28055.
Date of creation: 15 Apr 2004
Date of revision: 11 Jan 2010
Scale Elasticity; Aggregation; Duality;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
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- Timo Kuosmanen & Laurens Cherchye & Timo Sipiläinen, 2003.
"The Law of One Price in Data Envelopment Analysis: Restricting Weight Flexibility Across Firms,"
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"Aggregation of Malmquist Productivity Indexes,"
34689, University Library of Munich, Germany.
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CEPA Working Papers Series, School of Economics, University of Queensland, Australia
WP032010, School of Economics, University of Queensland, Australia.
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- Valentin Zelenyuk, 2012. "Aggregation of Scale Efficiency," CEPA Working Papers Series, School of Economics, University of Queensland, Australia WP042012, School of Economics, University of Queensland, Australia.
- Fare, Rolf & Zelenyuk, Valentin, 2007. "Extending Fare and Zelenyuk (2003)," European Journal of Operational Research, Elsevier, Elsevier, vol. 179(2), pages 594-595, June.
- Léopold Simar & Valentin Zelenyuk, 2007. "Statistical inference for aggregates of Farrell-type efficiencies," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 22(7), pages 1367-1394.
- Vladimir Nesterenko & Valentin Zelenyuk, 2007. "Measuring potential gains from reallocation of resources," Journal of Productivity Analysis, Springer, Springer, vol. 28(1), pages 107-116, October.
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