IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v68y2016i1p40-63..html
   My bibliography  Save this article

Returns to scale and curvature in the presence of spillovers: evidence from European countries

Author

Listed:
  • Anthony J. Glass
  • Karligash Kenjegalieva
  • Robin C. Sickles

Abstract

Drawing on a recent development on the interpretation of spatial econometric models, we extend two classic characteristics of production (returns to scale and diminishing marginal productivity of factor inputs) to the spatial case. In the context of a spatial translog production function we define internal (i.e., direct), external (i.e., indirect), and total (direct plus indirect) returns to scale. The spatial production function gives rise to direct, indirect, and total productions functions so we set out empirical checks to establish if these functions are concave. The ideas of spatial returns to scale and spatial concavity/convexity can easily be applied to other technologies (e.g., cost and distance functions) and other functional forms (e.g., Cobb-Douglas). We apply these ideas to aggregate production of European countries using balanced panel data for the period 1990–2011.

Suggested Citation

  • Anthony J. Glass & Karligash Kenjegalieva & Robin C. Sickles, 2016. "Returns to scale and curvature in the presence of spillovers: evidence from European countries," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 40-63.
    • Handle: RePEc:oup:oxecpp:v:68:y:2016:i:1:p:40-63.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/oep/gpv052
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Han, Jaepil & Sickles, Robin C., 2019. "Estimation of Industry-level Productivity with Cross-sectional Dependence by Using Spatial Analysis," Working Papers 19-002, Rice University, Department of Economics.
    2. Glass, Anthony J. & Kenjegaliev, Amangeldi & Kenjegalieva, Karligash, 2020. "Spatial scale and product mix economies in U.S. banking with simultaneous spillover regimes," European Journal of Operational Research, Elsevier, vol. 284(2), pages 693-711.
    3. Orea, Luis & Álvarez, Inmaculada C., 2019. "Spatial Production Economics," Efficiency Series Papers 2019/06, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    4. Gong, Binlei, 2020. "Multi-dimensional interactions in the oilfield market: A jackknife model averaging approach of spatial productivity analysis," Energy Economics, Elsevier, vol. 86(C).
    5. Glass, Anthony J. & Kenjegalieva, Karligash, 2019. "A spatial productivity index in the presence of efficiency spillovers: Evidence for U.S. banks, 1992–2015," European Journal of Operational Research, Elsevier, vol. 273(3), pages 1165-1179.
    6. Emir Malikov & Jingfang Zhang & Shunan Zhao & Subal C. Kumbhakar, 2023. "Accounting for Cross-Location Technological Heterogeneity in the Measurement of Operations Efficiency and Productivity," Papers 2302.13430, arXiv.org.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:68:y:2016:i:1:p:40-63.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.