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A dual measure of economies of scope

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  • Hajargasht, Gholamreza
  • Coelli, Tim
  • Rao, D.S. Prasada

Abstract

A derivative-based measure of economies of scope is obtained by exploiting the duality between the shadow cost function and the input distance function. This is a useful measure when the econometric estimation of a cost function is not viable.

Suggested Citation

  • Hajargasht, Gholamreza & Coelli, Tim & Rao, D.S. Prasada, 2008. "A dual measure of economies of scope," Economics Letters, Elsevier, vol. 100(2), pages 185-188, August.
  • Handle: RePEc:eee:ecolet:v:100:y:2008:i:2:p:185-188
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    1. O'Donnell, Christopher J. & Coelli, Timothy J., 2005. "A Bayesian approach to imposing curvature on distance functions," Journal of Econometrics, Elsevier, vol. 126(2), pages 493-523, June.
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    8. Ivaldi, M & McCullough, G J, 2001. "Density and Integration Effects on Class I U.S. Freight Railroads," Journal of Regulatory Economics, Springer, vol. 19(2), pages 161-182, March.
    9. Coelli, Tim & Fleming, Euan, 2004. "Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea," Agricultural Economics, Blackwell, vol. 31(2-3), pages 229-239, December.
    10. Takanori Ida & Tetsuya Kuwahara, 2004. "Yardstick Cost Comparison and Economies of Scale and Scope in Japan's Electric Power Industry," Asian Economic Journal, East Asian Economic Association, vol. 18(4), pages 423-438, December.
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    Cited by:

    1. Maria Olivares & Heike Wetzel, 2014. "Editor's Choice Competing in the Higher Education Market: Empirical Evidence for Economies of Scale and Scope in German Higher Education Institutions," CESifo Economic Studies, CESifo, vol. 60(4), pages 653-680.
    2. Nonthakot, Phanin & Fleming, Euan M. & Villano, Renato A., 2008. "An Assessment of the Impact of Strategic Alliances in Food Processing on the Technical Efficiency of Housewives Groups in Thailand," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44411, European Association of Agricultural Economists.
    3. Villano, Renato & Fleming, Euan & Fleming, Pauline, 2010. "Evidence of farm-level synergies in mixed-farming systems in the Australian Wheat-Sheep Zone," Agricultural Systems, Elsevier, vol. 103(3), pages 146-152, March.
    4. Maria Olivares & Heike Wetzel, 2011. "Competing in the Higher Education Market: Empirical Evidence for Economies of Scale and Scope in German Higher Education Institutions," Economics of Education Working Paper Series 0070, University of Zurich, Department of Business Administration (IBW).
    5. Singbo, Alphonse G. & Emvalomatis, Grigorios & Alfons, Oude Lansink, 2013. "Assessing the impact of crop specialization on farms’ performance in vegetables farming in Benin: a non-neutral stochastic frontier approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149172, Agricultural and Applied Economics Association.
    6. Jiro Nemoto & Noriko Furumatsu, 2014. "Scale and scope economies of Japanese private universities revisited with an input distance function approach," Journal of Productivity Analysis, Springer, vol. 41(2), pages 213-226, April.
    7. A. Wondemu Kifle, 2016. "Working Paper 237 - Decomposing Sources of Productivity Change in Small-Scale Farming in Ethiopia," Working Paper Series 2332, African Development Bank.
    8. Renner, Swetlana & Glauben, Thomas & Hockmann, Heinrich, 2012. "Measurement And Decomposition Of Flexibility Of Multi-Output Firms," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 124865, International Association of Agricultural Economists.
    9. Ofori-Bah, Adeline & Asafu-Adjaye, John, 2011. "Scope economies and technical efficiency of cocoa agroforesty systems in Ghana," Ecological Economics, Elsevier, vol. 70(8), pages 1508-1518, June.
    10. Wimmer, Stefan G. & Sauer, Johannes, 2017. "The Economic Benefits of Farm Diversification: An Empirical Analysis of Economies of Scope Using the Dual Approach," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258465, Agricultural and Applied Economics Association.
    11. Renner, Swetlana & Hockmann, Heinrich & Glauben, Thomas, 2011. "Measuring flexibility of multi-output firms: a primal and a dual measure," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114797, European Association of Agricultural Economists.
    12. Swetlana Renner & Thomas Glauben & Heinrich Hockmann & Pierre Ouellette, 2015. "Primal and dual multi-output flexibility measures," Journal of Productivity Analysis, Springer, vol. 44(2), pages 127-136, October.

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