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Measuring Scale Efficiency from a Translog Production Function

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  • Subhash Ray

Abstract

In parametric analysis based on a frontier production function, usually the scale elasticity rather than scale efficiency level is reported. In this paper we show how one can use an estimated translog production function to obtain output- and input-oriented measures of scale efficiency at an observed input bundle. We also show how the estimated model can be used to determine the optimal quantity of labor input for an exogenously fixed quantity of capital. Copyright Kluwer Academic Publishers 1999

Suggested Citation

  • Subhash Ray, 1999. "Measuring Scale Efficiency from a Translog Production Function," Journal of Productivity Analysis, Springer, vol. 11(2), pages 183-194, April.
  • Handle: RePEc:kap:jproda:v:11:y:1999:i:2:p:183-194
    DOI: 10.1023/A:1007792201696
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    References listed on IDEAS

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    1. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 17(1), pages 35-44, July.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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    Cited by:

    1. Christian Growitsch & Tooraj Jamasb & Michael Pollitt, 2009. "Quality of service, efficiency and scale in network industries: an analysis of European electricity distribution," Applied Economics, Taylor & Francis Journals, vol. 41(20), pages 2555-2570.
    2. Dimitrios Panagiotou & Athanassios Stavrakoudis, 2017. "A Stochastic Production Frontier Estimator of the Degree of Oligopsony Power in the U.S. Cattle Industry," Journal of Industry, Competition and Trade, Springer, vol. 17(1), pages 121-133, March.
    3. Pokharel, Krishna P & Featherstone, Allen M, 2016. "A Nonparametric Approach to Estimate Multiproduct and Product-specific Scale and Scope Economies for Agricultural Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236182, Agricultural and Applied Economics Association.
    4. Kaoru Tone & Biresh Sahoo, 2006. "Re-examining scale elasticity in DEA," Annals of Operations Research, Springer, vol. 145(1), pages 69-87, July.

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