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Market selection and scale inefficiency – A new methodology applied to EU business services


  • Kox, Henk L.M.
  • van Leeuwen, George


The paper proposes a new way of analysing the efficiency of dynamic market selection, based on the persistence of scale economies. The new methodology is used to investigate the causes of stagnating productivity growth in EU business services. The persistence of scale-related inefficiencies is used as an indicator for the effectiveness of market selection.

Suggested Citation

  • Kox, Henk L.M. & van Leeuwen, George, 2013. "Market selection and scale inefficiency – A new methodology applied to EU business services," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 77-94.
  • Handle: RePEc:eee:streco:v:25:y:2013:i:c:p:77-94 DOI: 10.1016/j.strueco.2012.02.006

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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    More about this item


    Market selection; Scale inefficiencies; Market contestability; Regulation; Productivity;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • D2 - Microeconomics - - Production and Organizations
    • L8 - Industrial Organization - - Industry Studies: Services


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