Mario Fortin () (GREDI, Département d'économique, Université de Sherbrooke) André Leclerc () (GREDI, Université de Sherbrooke and GEREM, Université de Perpignan)
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Economies of scope are present when producing jointly a diversified basket of goods and services is less costly than their separate production. Data Envelopment Analysis (DEA) can estimate economies of scope by the difference between input requirement sets of diversified and specialized firms and are applicable only when both specialized and diversified firms are present in the sample. We develop a measure of economies of scope to an output orientated DEA model even when the sample comprises only diversified firms, to obtain radial estimation of economies of scope. Our method puts in evidence that economies of scope are influenced by scale inefficiencies, and if these inefficiencies are left aside, diseconomies of scope are impossible.
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Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number
06-22.
Find related papers by JEL classification: C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
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