On The Choice Of Functional Forms In The Measurement Of Scale And Scope Economies: Generalized Box-Cox And Composite Cost Functions
This paper estimates and compares generalized Box-Cox and composite cost functions to identify scale and scope economies. The robustness of the outcomes to different functional specifications was examined. Increasing returns to scale was common for product-specific and the overall measures. Generalized Leontief and composite forms yielded more robust elasticity, scale and scope measures. The generalized Box-Cox model was selected as the appropriate functional form as all the special cases were rejected.
|Date of creation:||2003|
|Contact details of provider:|| Web page: http://www.saea.org/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Berndt, Ernst R & Khaled, Mohammed S, 1979. "Parametric Productivity Measurement and Choice among Flexible Functional Forms," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1220-1245, December.
- James A. Chalfant, 1984. "Comparison of Alternative Functional Forms with Application to Agricultural Input Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(2), pages 216-220.
- Pulley, Lawrence B & Braunstein, Yale M, 1992. "A Composite Cost Function for Multiproduct Firms with an Application to Economies of Scope in Banking," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 221-230, May.
- Caves, Douglas W & Christensen, Laurits R & Tretheway, Michael W, 1980. "Flexible Cost Functions for Multiproduct Firms," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 477-481, August.
- Allen M. Featherstone & Charles B. Moss, 1994.
"Measuring Economies of Scale and Scope in Agricultural Banking,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 76(3), pages 655-661.
- Featherstone, Allen M. & Moss, Charles B., 1993. "Measuring Economies of Scale and Scope in Agricultural Banking," Proceedings: 1993 Regional Committee NC-207, October 4-5, 1993, Chicago, Illinois 131339, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
- Pulley, Lawrence B & Humphrey, David B, 1993. "The Role of Fixed Costs and Cost Complementarities in Determining Scope Economies and the Cost of Narrow Banking Proposals," The Journal of Business, University of Chicago Press, vol. 66(3), pages 437-462, July.
When requesting a correction, please mention this item's handle: RePEc:ags:saeatm:35057. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.