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Nonparametric cost and revenue functions under constant economies of scale: A simplification for the single output or input case

Author

Listed:
  • Briec, Walter

    (Universit´e de Perpignan, Perpignan, France)

  • Kerstens, Kristiaan

    (IESEG School of Management, Lille, France)

  • Van de Woestyne, Ignace

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

Abstract

This note shows how the linear programs needed to compute cost and revenue functions under constant returns to scale and a single output or input, respectively, can be replaced with a more efficient enumeration algorithm. An empirical illustration shows the gain in computer time one can obtain.

Suggested Citation

  • Briec, Walter & Kerstens, Kristiaan & Van de Woestyne, Ignace, 2011. "Nonparametric cost and revenue functions under constant economies of scale: A simplification for the single output or input case," Working Papers 2011/12, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    • Handle: RePEc:hub:wpecon:201112
    as

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    References listed on IDEAS

    as
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    5. de Borger, Bruno & Kerstens, Kristiaan & Staat, Matthias, 2008. "Transit costs and cost efficiency: Bootstrapping non-parametric frontiers," Research in Transportation Economics, Elsevier, vol. 23(1), pages 53-64, January.
    6. H. A. Eiselt & C. -L. Sandblom, 2007. "Linear Programming and its Applications," Springer Books, Springer, number 978-3-540-73671-4, June.
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    More about this item

    Keywords

    nonparametric cost and revenue functions;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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