Returns to scale and curvature in the presence of spillovers: evidence from European countries

Anthony J. Glass, Karligash Kenjegalieva () and Robin Sickles

Oxford Economic Papers, 2016, vol. 68, issue 1, 40-63

Abstract: Drawing on a recent development on the interpretation of spatial econometric models, we extend two classic characteristics of production (returns to scale and diminishing marginal productivity of factor inputs) to the spatial case. In the context of a spatial translog production function we define internal (i.e., direct), external (i.e., indirect), and total (direct plus indirect) returns to scale. The spatial production function gives rise to direct, indirect, and total productions functions so we set out empirical checks to establish if these functions are concave. The ideas of spatial returns to scale and spatial concavity/convexity can easily be applied to other technologies (e.g., cost and distance functions) and other functional forms (e.g., Cobb-Douglas). We apply these ideas to aggregate production of European countries using balanced panel data for the period 1990–2011.

Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1093/oep/gpv052 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:oxecpp:v:68:y:2016:i:1:p:40-63.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().