Aggregation of Scale Elasticities Across Firms
In this paper we propose new aggregate or ‘group’ primal and dual scale elasticity measures of an economic system (e.g., industry consisting of several firms, etc.). The main contribution of the paper is that we show under what assumptions a formal relationship between these new aggregate scale elasticity measures and the individual scale elasticities can be established. The derivations are based on the principles of economic optimization, and in particular on the duality theory of Shephard (1953) and the aggregation theory of Koopmans (1957).
|Date of creation:||15 Apr 2004|
|Date of revision:||11 Jan 2010|
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Web page: https://mpra.ub.uni-muenchen.de
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- Léopold Simar & Valentin Zelenyuk, 2007. "Statistical inference for aggregates of Farrell-type efficiencies," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1367-1394.
- Timo Kuosmanen & Laurens Cherchye & Timo Sipiläinen, 2003.
"The Law of One Price in Data Envelopment Analysis: Restricting Weight Flexibility Across Firms,"
0312006, EconWPA, revised 18 Dec 2003.
- Kuosmanen, Timo & Cherchye, Laurens & Sipilainen, Timo, 2006. "The law of one price in data envelopment analysis: Restricting weight flexibility across firms," European Journal of Operational Research, Elsevier, vol. 170(3), pages 735-757, May.
- Valentin Zelenyuk, 2012.
"Aggregation of Scale Efficiency,"
CEPA Working Papers Series
WP042012, School of Economics, University of Queensland, Australia.
- Fare, Rolf & Zelenyuk, Valentin, 2007. "Extending Fare and Zelenyuk (2003)," European Journal of Operational Research, Elsevier, vol. 179(2), pages 594-595, June.
- Zelenyuk, Valentin, 2005.
"Aggregation of Malmquist Productivity Indexes,"
34689, University Library of Munich, Germany.
- Valentin Zelenyuk, 2010.
"Aggregation of Economic Growth Rates and of its Sources,"
CEPA Working Papers Series
WP032010, School of Economics, University of Queensland, Australia.
- Zelenyuk, Valentin, 2011. "Aggregation of economic growth rates and of its sources," European Journal of Operational Research, Elsevier, vol. 212(1), pages 190-198, July.
- Fare, Rolf & Zelenyuk, Valentin, 2003. "On aggregate Farrell efficiencies," European Journal of Operational Research, Elsevier, vol. 146(3), pages 615-620, May.
- Vladimir Nesterenko & Valentin Zelenyuk, 2007. "Measuring potential gains from reallocation of resources," Journal of Productivity Analysis, Springer, vol. 28(1), pages 107-116, October.
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