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Aggregation of directional distance functions and industrial efficiency: a note

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  • Giannis Karagiannis

    (University of Macedonia)

Abstract

Briec et al. (2003) Aggregation of directional distance functions and industrial efficiency. J Econ 79:237–261) showed that industrial and structural efficiency are identical in the context of cost aggregation if all firms use the same technology, a single output is produced and constant returns to scale prevail. In this note it is shown that the same is also true if the technology is additive, which is equivalently referred to as independence in production or input non-jointness.

Suggested Citation

  • Giannis Karagiannis, 2025. "Aggregation of directional distance functions and industrial efficiency: a note," Journal of Economics, Springer, vol. 144(2), pages 139-143, March.
    • Handle: RePEc:kap:jeczfn:v:144:y:2025:i:2:d:10.1007_s00712-024-00880-z
    DOI: 10.1007/s00712-024-00880-z
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    References listed on IDEAS

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    1. William J. Baumol & Dietrich Fischer, 1978. "Cost-Minimizing Number of Firms and Determination of Industry Structure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(3), pages 439-467.
    2. Steven Buccola & Rolf Fare, 2008. "Reaggregation and firm-level inference in multiplant technologies," Journal of Economics, Springer, vol. 95(3), pages 255-270, December.
    3. Walter Briec & Benoit Dervaux & Hervé Leleu, 2003. "Aggregation of Directional Distance Functions and Industrial Efficiency," Journal of Economics, Springer, vol. 79(3), pages 237-261, July.
    4. Briec, Walter & Mussard, Stéphane, 2020. "Improvement of technical efficiency of firm groups," European Journal of Operational Research, Elsevier, vol. 283(3), pages 991-1001.
    5. Jayashree Sil & Steven Buccola, 1995. "Efficiency of the Multiplant, Multiproduct Firm," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 1001-1011.
    6. Briec, Walter & Mussard, Stéphane, 2014. "Efficient firm groups: Allocative efficiency in cooperative games," European Journal of Operational Research, Elsevier, vol. 239(1), pages 286-296.
    7. Rolf Färe & Giannis Karagiannis, 2023. "Addition and aggregative efficiency," Journal of Productivity Analysis, Springer, vol. 59(3), pages 281-285, June.
    8. Robert G. Chambers, 1998. "The Structure of Multiplant Technologies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 839-851.
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