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Scale efficiency and homotheticity: equivalence of primal and dual measures

Valentin Zelenyuk

Journal of Productivity Analysis, 2014, vol. 42, issue 1, 15-24

Abstract: We address the issue of equivalence of primal and dual measures of scale efficiency in general production theory framework. We find that particular types of homotheticity of technologies, which we refer to here as scale homotheticity, provide necessary and sufficient condition for such equivalence. We also identify the case when the scale homotheticity is equivalent to the homothetic structures from Shephard (Theory of cost and production functions, Princeton studies in mathematical economics. Princeton University Press, Princeton, 1970 ). Copyright Springer Science+Business Media New York 2014

Keywords: Production theory; Scale efficiency; Homotheticity; Duality theory; D24 (search for similar items in EconPapers)
Date: 2014
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Working Paper: Scale Efficiency and Homotheticity: Equivalence of Primal and Dual Measures (2013) Downloads
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