Multi-output Capacity Measures and Their Relevance for Productivity

Rolf Fare, Shawna Grosskopf and Jim Kirkley

Bulletin of Economic Research, 2000, vol. 52, issue 2, 101-12

Abstract: In this paper, measures of capacity are developed following those suggested in 1968 by Leif Johansen. By taking advantage of Shephard's duality, both primal and dual multi-output measures of capacity can be derived. Having generalized the capacity utilization measures, the authors show how these may be entered into measures of productivity. In particular, it is shown how the Malmquist direct and indirect productivity measures are related to various measures of capacity utilization. Copyright 2000 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 2000
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