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Is there a prison size dilemma? An empirical analysis of output-specific economies of scale

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  • Hennebel, Veerle
  • Simper, Richard
  • Verschelde, Marijn

Abstract

We advocate a nonparametric multi-output framework to estimate output-specific economies of scale and we apply this model to male prisons in England and Wales over the sample period 2009–2012. To estimate output-specific returns to scale in prisons, we consider not only the cost-per-place, but also qualitative outputs such as purposeful out-of-cell activity and successful reintegration. Furthermore, we introduce environmental heterogeneity using the characteristics of the prison(ers). England and Wales offers a unique example to study economies of scale in prisons as the UK has started to build new super-size prisons in order to replace the most outdated prisons.

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  • Hennebel, Veerle & Simper, Richard & Verschelde, Marijn, 2017. "Is there a prison size dilemma? An empirical analysis of output-specific economies of scale," European Journal of Operational Research, Elsevier, vol. 262(1), pages 306-321.
    • Handle: RePEc:eee:ejores:v:262:y:2017:i:1:p:306-321
    DOI: 10.1016/j.ejor.2017.03.055
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