Estimating a Nonparametric Homothetic S-Shaped Production Relation for the US West Coast Groundfish Production 2004-2007

O. B. Olesen, J. Ruggiero and A. T. Mamula

Data Envelopment Analysis Journal, 2017, vol. 2, issue 2, 163-199

Abstract: The use of the convex hull estimation in data envelopment analysis (DEA) models is often characterized as a variable returns to scale model. However it is well known that standard microeconomic production theory posits a nonconvex S-shaped production frontier, i.e. a production technology that obeys the Regular Ultra Passum Law with a monotone decreasing scale elasticity along any expansion path. Recently for a homothetic production relation a nonparametric estimation approach that allows for a nonconvex S-shaped scaling law has been proposed. In this paper we use this approach to analyze and estimate scale characteristics of the US West Coast groundfish production for the period 2004–2007.

Keywords: Data envelopment analysis (DEA); S-shaped production function; Isoquant estimation; Fisheries (search for similar items in EconPapers)
Date: 2017
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