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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- Valentin Zelenyuk, 2010.
"Aggregation of Economic Growth Rates and of its Sources,"
CEPA Working Papers Series
WP032010, School of Economics, University of Queensland, Australia.
- Zelenyuk, Valentin, 2011. "Aggregation of economic growth rates and of its sources," European Journal of Operational Research, Elsevier, vol. 212(1), pages 190-198, July.
- Kuosmanen, Timo & Cherchye, Laurens & Sipilainen, Timo, 2006.
"The law of one price in data envelopment analysis: Restricting weight flexibility across firms,"
European Journal of Operational Research,
Elsevier, vol. 170(3), pages 735-757, May.
- Timo Kuosmanen & Laurens Cherchye & Timo Sipiläinen, 2003. "The Law of One Price in Data Envelopment Analysis: Restricting Weight Flexibility Across Firms," Microeconomics 0312006, EconWPA, revised 18 Dec 2003.
- Fare, Rolf & Zelenyuk, Valentin, 2003. "On aggregate Farrell efficiencies," European Journal of Operational Research, Elsevier, vol. 146(3), pages 615-620, May.
- Vladimir Nesterenko & Valentin Zelenyuk, 2007. "Measuring potential gains from reallocation of resources," Journal of Productivity Analysis, Springer, vol. 28(1), pages 107-116, October.
- Zelenyuk, Valentin, 2005.
"Aggregation of Malmquist Productivity Indexes,"
34689, University Library of Munich, Germany.
- Fare, Rolf & Zelenyuk, Valentin, 2007. "Extending Fare and Zelenyuk (2003)," European Journal of Operational Research, Elsevier, vol. 179(2), pages 594-595, June.
- Valentin Zelenyuk, 2012. "Aggregation of Scale Efficiency," CEPA Working Papers Series WP042012, School of Economics, University of Queensland, Australia.
- Léopold Simar & Valentin Zelenyuk, 2007. "Statistical inference for aggregates of Farrell-type efficiencies," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1367-1394.
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