A Scale Elasticity Measure for Directional Distance Function and its Dual: Theory and DEA Estimation
AbstractIn this paper we focus on scale elasticity measure based on directional distance function for multi-output-multi-input technologies, explore its fundamental properties and show its equivalence with the input oriented and output oriented scale elasticity measures. We also establish duality relationship between the scale elasticity measure based on the directional distance function with scale elasticity measure based on the profit function. Finally, we discuss the estimation issues of the scale elasticity based on the directional distance function via the DEA estimator.
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Bibliographic InfoPaper provided by School of Economics, University of Queensland, Australia in its series CEPA Working Papers Series with number WP072012.
Date of creation: 2012
Date of revision:
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