Author
Listed:
- Tayebe Ahangary
(Department of Mathematics, Science and Research Branch, Islamic Azad University, Tehran, Iran)
- Mohsen Rostamy Malkhalifeh
(Department of Mathematics, Science and Research Branch, Islamic Azad University, Tehran, Iran)
- Farhad Hosseinzadeh Lotfi
(Department of Mathematics, Science and Research Branch, Islamic Azad University, Tehran, Iran)
Abstract
The structure of production technology has been made of a few stages. Therefore, it generates an intermediate output, which is important to estimate the quantitative and qualitative returns to scale and for managers to make decisions. Estimates of scale elasticity have long been considered in two-stage technologies, many researchers have suggested methods to estimate it, but they were not investigated from the base, and the intermediate output was also ignored. There were no strong relationships between the total scale elasticity and the scale elasticity of both stages. The proposed method can estimate the scale elasticity from the base and from the production transfer function, which in turn has a stronger basic structure compared to previously proposed methods. It is much simpler and easier to be understood than previous methods. The scale elasticity of the entire network can be estimated by multiplying the scale elasticity of both stages. By expressing the parametric and nonparametric approaches of two-stage network scale elasticity, the ratio of the final output to primary input changes can be obtained according to the change of the intermediate output compared to primary input as well as the final output to intermediate input. Finally, the superiority of the proposed method is illustrated by practical examples.
Suggested Citation
Tayebe Ahangary & Mohsen Rostamy Malkhalifeh & Farhad Hosseinzadeh Lotfi, 2023.
"Estimating Returns to Scale of Two-Stage Network Technologies Using Total Scale Elasticity by Considering the Intermediate Output,"
International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1319-1339, July.
Handle:
RePEc:wsi:ijitdm:v:22:y:2023:i:04:n:s0219622022500705
DOI: 10.1142/S0219622022500705
Download full text from publisher
As the access to this document is restricted, you may want to
for a different version of it.
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:wsi:ijitdm:v:22:y:2023:i:04:n:s0219622022500705. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitdm/ijitdm.shtml .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.