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Multi-output Capacity Measures and Their Relevance for Productivity

Author

Listed:
  • Fare, Rolf
  • Grosskopf, Shawna
  • Kirkley, Jim

Abstract

In this paper, measures of capacity are developed following those suggested in 1968 by Leif Johansen. By taking advantage of Shephard's duality, both primal and dual multi-output measures of capacity can be derived. Having generalized the capacity utilization measures, the authors show how these may be entered into measures of productivity. In particular, it is shown how the Malmquist direct and indirect productivity measures are related to various measures of capacity utilization. Copyright 2000 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Fare, Rolf & Grosskopf, Shawna & Kirkley, Jim, 2000. "Multi-output Capacity Measures and Their Relevance for Productivity," Bulletin of Economic Research, Wiley Blackwell, vol. 52(2), pages 101-112, April.
  • Handle: RePEc:bla:buecrs:v:52:y:2000:i:2:p:101-12
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    1. repec:eee:ejores:v:275:y:2019:i:1:p:387-397 is not listed on IDEAS
    2. E. Grifell-Tatjé & C. Lovell, 2014. "Productivity, price recovery, capacity constraints and their financial consequences," Journal of Productivity Analysis, Springer, vol. 41(1), pages 3-17, February.
    3. Bruno De Borger & Kristiaan Kerstens & Diego Prior & Ignace Van de Woestyne, 2013. "Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions," Applied Economics, Taylor & Francis Journals, vol. 45(24), pages 3529-3529, August.
    4. Sahoo, Biresh K. & Tone, Kaoru, 2009. "Decomposing capacity utilization in data envelopment analysis: An application to banks in India," European Journal of Operational Research, Elsevier, vol. 195(2), pages 575-594, June.
    5. Valdmanis, Vivian & Bernet, Patrick & Moises, James, 2010. "Hospital capacity, capability, and emergency preparedness," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1628-1634, December.
    6. Pascoe, Sean & Hutton, Trevor & van Putten, Ingrid & Dennis, Darren & Skewes, Tim & Plagányi, Éva & Deng, Roy, 2013. "DEA-based predictors for estimating fleet size changes when modelling the introduction of rights-based management," European Journal of Operational Research, Elsevier, vol. 230(3), pages 681-687.
    7. Fernandez, Carmen & Koop, Gary & Steel, Mark F.J., 2005. "Alternative efficiency measures for multiple-output production," Journal of Econometrics, Elsevier, vol. 126(2), pages 411-444, June.
    8. repec:eee:jomega:v:76:y:2018:i:c:p:112-127 is not listed on IDEAS
    9. Ray, Subhash C., 2015. "Nonparametric measures of scale economies and capacity utilization: An application to U.S. manufacturing," European Journal of Operational Research, Elsevier, vol. 245(2), pages 602-611.
    10. Cesaroni, Giovanni & Kerstens, Kristiaan & Van de Woestyne, Ignace, 2019. "Short- and long-run plant capacity notions: Definitions and comparison," European Journal of Operational Research, Elsevier, vol. 275(1), pages 387-397.
    11. Pascoe, Sean & Tingley, Diana, 2006. "Economic capacity estimation in fisheries: A non-parametric ray approach," Resource and Energy Economics, Elsevier, vol. 28(2), pages 124-138, May.
    12. Halkos, George & Polemis, Michael, 2016. "The good, the bad and the ugly? Balancing environmental and economic impacts towards efficiency," MPRA Paper 72132, University Library of Munich, Germany.
    13. Daniel Friesner & Matthew McPherson & Robert Rosenman, 2006. "Are Hospitals Seasonally Inefficient? Evidence from Washington State Hospitals," Working Papers 2006-3, School of Economic Sciences, Washington State University.
    14. Ouellette, Pierre & Vierstraete, Valerie, 2004. "Technological change and efficiency in the presence of quasi-fixed inputs: A DEA application to the hospital sector," European Journal of Operational Research, Elsevier, vol. 154(3), pages 755-763, May.
    15. Lindebo, Erik & Hoff, Ayoe & Vestergaard, Niels, 2007. "Revenue-based capacity utilisation measures and decomposition: The case of Danish North Sea trawlers," European Journal of Operational Research, Elsevier, vol. 180(1), pages 215-227, July.
    16. Vivian Valdmanis & Arianna DeNicola & Patrick Bernet, 2015. "Public health capacity in the provision of health care services," Health Care Management Science, Springer, vol. 18(4), pages 475-482, December.

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