Inferring scope economies from the input distance function

Rolf Färe and Giannis Karagiannis

Economics Letters, 2018, vol. 172, issue C, 40-42

Abstract: We show that a necessary and sufficient condition for scope economies is that the technical efficiency of the joint production process to be less than or equal to the weighted sum of the technical efficiencies of the individual activities.

Keywords: Scope economies; Input distance function; Efficiency (search for similar items in EconPapers)
JEL-codes: D21 D24 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:172:y:2018:i:c:p:40-42

DOI: 10.1016/j.econlet.2018.07.037

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