Convex and Nonconvex Input-Oriented Technical and Economic Capacity Measures:Technical and Economic Capacity Measures: An Empirical Comparison

Kristiaan Kerstens, Jafar Sadeghi and Ignace Van de Woestyne
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Jafar Sadeghi: CNRS (LEM-UMR 9221) and IÉSEG School of Management
Ignace Van de Woestyne: KU Leuven, Belgium

No 2017-EQM-08, Working Papers from IESEG School of Management

Abstract: This contribution has two main objectives. First, it aims to compare empirically input- oriented technical and economic capacity notions. Second, it aims to compare these technical and economic capacity notions on both convex and nonconvex technologies. After defining these input-oriented technical and economic capacity notions, this contribution focuses on empirically comparing these different capacity utilization notions using a secondary data set. Anticipating two key empirical conclusions, we find that all these different capacity notions follow different distributions, and also that these distributions almost always differ under convex and nonconvex technologies.

Keywords: Data Envelopment Analysis; Technology; Cost function; Capacity utilization (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2017-11
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ies:wpaper:e201708

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