[alpha]-Returns to scale and multi-output production technologies
This contribution proposes a specification of strictly increasing and decreasing returns to scale in multi-output technologies. Along this line a notion of [alpha]-returns to scale is derived from that of homogeneous multi-output technology. For a large class of technologies we establish necessary and sufficient conditions characterizing strictly increasing and strictly decreasing returns to scale to scale. Furthermore, a relationship between input, output and graph distance functions is established. These connections lead naturally to a link between the various Malmquist indexes and the Chavas-Cox productivity index. Finally, we show that these concepts can be implemented in a DEA context using a piecewise homogeneous constant elasticity substitution-transformation model due to [Färe, R., Grosskopf, S., Njinkeu, D., 1988b. On piecewise reference technologies. Management Science 34, 1507-1511].
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